Strategic And Operations Management
LVMH Moët Hennessy – Louis Vuitton is considered to be a world leader in luxury possessing a unique portfolio of over 60 extremely prestigious brands including names like Dom Perignon, Christian Dior, Donna Karan and Louis Vuitton.. The various sectors in which the group is active include Fashion and Leather Products, Watches and Jewelry, Perfumes and Cosmetics, Wines and Spirits and Selective Retailing. Since its creation in 1987, due to its expansion of international retail network and brand development strategy, LVMH had a strong growth dynamic with over 3000 stores worldwide. In the current day, almost 100,000 employees share the group’s value. LVMH carries out numerous initiatives for protecting the environment and community action for human development such as LVMH-ESSEC Chair and LVMH House. The group is also involved in the support of designers and young artists, humanitarian action, heritage, culture, and education.
Mission: The mission of the LVMH group is to represent the most refined qualities of western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy.
Vision: LVMH pursue authentic quality and uniqueness in their products. The company persists to strive for global growth to remain prominent in the future. They want to maintain their ground to be a pioneer and leader among luxury industry. Through this, the company will increase the share price with their excellent performance to bolster investor’s confidence.
Political: A competitive, transparent and modern economy with vibrant and updated information and communication technology sector.
Environmental: World leader in business freedom, property rights and trade freedom, a high level of economic freedom available with a sound banking system and taxes being moderate with a high level of overall taxation.
Social: Scenario of shrinking workforce and a catapulting population.
Technology: Existence of a cutting edge expertise in high tech clusters, availability of wireless solutions, adaptation to the emerging technologies.
The potential for the use of synergies between the different businesses has been observed from the corporate value chain. The synergies that can be identified from the value chain analysis of LVMH include the following.
Technology: The development in technology can be utilized across businesses. E-procurement, Intranet aid in exchange of technology across businesses.
CRM, Sales, Marketing, Distribution and Service: In case the target market is common, the different businesses tend to overlap each other for route to market.
Operations: Since the trend of the products fall in the category of luxury, they tend to cater to the same market segments who are the consumer of premium price tagged products, hence the various businesses trade in similar markets. Except for Wine and Spirits, there is a tendency for different businesses to overlap.