Lvmh

Case: LVMH: Diversification Strategy into Luxury Goods Situation psychoanalysis (SWOT) Strengths 1.LVMH¡¯s prestige brand focus is a profound foundation of the group¡¯s strategy. It has the leadership in highlife product market 2. Its presence in wines and spirits constitutes an advantage for the group. convey to its strong position in champagne and cognac, Weaknesses 1. The high life goods argon very sensitive to the fluctuation of economy; any stinting wave could influence its sales. LVMH¡¯ s business largely depends on the economic condition, if economy was depressed, its sales harvest-festival slow waste sharply like it did in 2002, since demand for luxury goods declines markedly when receding or depression happens. 2.Broad acquisition makes no sense and could bring burden, such as it acquired Pury & Luxembourg, which is criticized since there was no room for art auction market. Opportunities 1.The demand of luxury products is rising. 2. at that place is a trend of mergence, acquisition, alliance. The small companies are seeking guard to exist in fierce competition. Threats 1.In 2003 economic growth remained slow in some of LVMH¡¯s markets, resulting in primarily weaker demand. The 5.8% reduction in revenues during that time shows that the familiarity has had problems in make do with the recent economic downturn.

2.A lingering global recession contributed to a worldwide decline in the purchase of luxury goods. Identification of Key issues 1.Most of products they sell are said(prenominal) each year, it¡¯s not helpful to be a fashion leader, and consumer¡¯s taste is changing. 2.The mission of the LVMH group is to agree the most refined qualities of Western Art de Vivre around the world. LVMH essential continue to equal to elegance and creativity. Alternatives 1. Focus on the plaza competences In order to make more profit in the successful business units, the strategy is focus on the company¡¯s core competences. As it is seen in the financial performance, LVMH is doing... If you unavoidableness to get a full essay, order it on our website: Orderessay

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