Louis Vuitton Case Study Model

In 1854, Louis Vuitton Malletier run his own company in Paris (France). That is, as we know, Louis Vuitton (LV). The brand grows into the world-renowned luxury leather finally. According to our case, his success is based on three rules. That is, to master his savoir, to provide excellent service to his customers and to innovate continuously. Besides, in 1987, the company of LV merged with Moet Hennessy that was a company much larger than it to form the Moet Hennessy Louis Vuitton (LVMH) group. Moreover, they had an agreement that each division would run independently. However, there was emerging a problem as time went. That was, relationships between the two divisions became badly because of how to run the company well. There are some problems

Such as Tokyo, Hong Kong, and New York. LV products are sold in wealthy cities worldwide to maintain and increase the perception of luxury relating to their products. Global luxury brands are acquiring or investing in small Indian brands and Indian manufacturing companies. Also, most of the consumers in India are women who have a strong awareness of authentic luxury products.

Present Situation in Global Economy

Louis Vuitton (LV) brand is also implementing its worldwide battle against counterfeiting. And Asian is a large market for selling its products. However, Chinese consumers purchase LV products from Europe because of high exchange rates and import tariffs.

Market Trends

Individual brands are bought up by large luxury groups. And large companies experience much higher margins because of brand recognition, advertising, and optimal brand portfolio management. With the development of globalization, the products are diversification, which apparel brands branch out to other luxury product categories. For example, jewelry, perfume, and cosmetics.

Porter’s

Also, it will make consumers satisfied due to the rarity. LV can create a trend for collection of limited edition LV products by the consumers. Moreover, LV can invite some famous person to advertise their goods. Such as in the movie or in the TV. Besides, in the long term, LV should be more distinctive from the competition by considering its business model to production of leather goods only. If LV can concentrate on leather goods production only, it will become the leader of leather goods and the specialist of producing different leather products. In addition, LV can try to venture into untapped market where it never touches before. And it can offer more economic lines to the consumer, which can prevent counterfeiting better and broaden their consumer base. On the other hand, in order to sustain growth, LV should create exclusivity for a narrower segment through unique high priced products for each region, targeting the absolute segments. If so, it also has some effects on stakeholders. Like in capital markets, it will increase profits. In product markets, it keep maintaining exclusivity of the brand without alienating existing consumers. In organizational markets, employees will gain more specialization in the hand making of these products. In addition, in order to sustain global