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Louis Vuitton Möet Hennesey (Lvmh)

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Louis Vuitton Möet Hennesey (Lvmh)
ABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20 Appendix 10: Cross Business Strategic Fits20 Appendix 11: Evaluating the Strategy of a Diversified Company21 Appendix 12: LVMH's Timeline of Mergers and Acquisitions24 9.0 REFERENCES25 1.0 Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH face and establish some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model, SWOT analysis and PESTEL. It was found that the key strategic issues that LVMH face centred on diversification and vertical integration. A number of strategies have been proposed to offer some recommendations to LVMH, they namely in restructuring their retail sector, considering the concept of moderate diversification and focusing on the human resources side of acquisitions and mergers.
2.0 Introduction This report is based on the analysis of a case study 27 titled: LVMH's Diversification Strategy into Luxury Goods. The scope of this report is limited to the data contained in the case and additional supporting evidence that was sourced. In order to analyse this case LVMH's history



References: Antoni, F 2003, 'LVHM in 2004: The Challenges of Strategic integration ', Board of Trustees of the Leland Standford Junior University, 2003, pp 1-33. Colonna, A 2003 'Don 't give up on LVHM yet! ', in Merrill Lynch, October 9, 2003. Company Datamonitor Report, June 2006 viewed 17th February 2007 http://web.ebscohost.com.ezlibproxy.unisa.edu.au/ehost/pdf?vid=6&hid=3&... Ettenson, Richard & Knowles, Jonathan (2006) "Merging the Brands and Branding the Merger", MIT Sloan Management Review, Vol. 47, No. 4, pp. 39-49 Frings, G 2005, 'Fashion, from Concept to Consumer ', 8th edn, Pearson Education Inc, New Jersey, USA. Harper, Neil W.C & Viguerie, S. Patrick 2002, 'Are you too focused ', McKinsey Quarterly, Special Edition Issue 2, pp. 29-37. Investopedia, "Mergers & Acquisitions", viewed on 17th February 2007 <http://www.investopedia.com/university/mergers/default.asp> Harper, Neil WC & Viguerie, S 2002 "Are you too Focused ", McKinsey Quarterly, Special Edition Issue 2, pp.29 - 37. Jacobs, Rick, (2003), "How to Put a Brand on a Merger", US Banker Nguyen, H & Kleiner, B 2003, 'The Effective Management of Mergers ', Leadership and Organisation Development Journal,. Vol.24, No.8, pp 447, 448, 450, 452. Roberto A. Weber and Colin Camerer (2003). "Cultural conflict and merger failure: An experimental approach." Management Science 49(4): 400-415. Schrempp E. Jürgen (2003) "DaimlerChrysler: Stalled", Business Week Online, viewed on 22nd February 2007, <http://www.businessweek.com/magazine/content/03_39/b3851016_mz044.htm&g... Sherwood, J. Battling It Out in Style. The age.com, March 2001 Stahl, G 2004, 'Getting it Together: The Leadership Challenge of Mergers and Acquisitions ', HR Magazine, Vol.24, No.5, pp. 3 - 5. Swystun, Jeff (2003), "Building Brands in Mergers & Acquisitions", viewed 18th February 2007 <http://www.brandchannel.com/brand_speak.asp?bs_id=21> Thompson Jr., A; Strickland III, A & Gamble, J 2005, A Crafting and Executing Strategy, 14th edn, Mc Graw-Hill Irwin, New York, USA. Thompson One Banker Financial Reports LVMH, accessed online 17th February 2007 <http://banker.thomsonib.com/ta/>

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