This resource kit consists of six articles dealing mainly with the company Vuitton. Three of these articles are from famous French newspapers (Le Monde, Les Echos, La Tribune) and are recent ones (October 2005). They deal mainly with Vuitton's place in Asia. We also include the article Vuitton: 150 years of profit and not a wrinkle from "The Capital", published in November 2005, which narrates the history of the company Vuitton.
The last two articles are taken from the Internet site France 3, which summarizes the course of the family.
Vuitton and the other key figures: We can introduce the company Vuitton by saying that it was created in 1834 by Louis Vuitton, with the introduction of a trunk in Paris. This was the precursor of luxury leather goods. The descendants of Louis Vuitton are now earning 3 billion Euros and are part of LVMH, which is the world leader in luxury. In 2004, LVMH achieved a profit of 2.372 billion Euros.
We can therefore say that there a strong financial potential, as there is money to invest, to innovate, and to do research and development. The group is active in five sectors with fifty brands and more than 1700 stores around the world, especially in Asia. These five areas and their primary brands are:
-Wine & Spirits: Moet & Chandon, Canard-Duchêne.
-Fashion & Leather Goods: Louis Vuitton, Kenzo, Dior.
-Perfumes & Cosmetics: Givenchy, Make Up For Ever.
-Jewelry & watches: Dior, Fred and LVMH joint venture
-Selective Retailing: Sephora La Samaritaine.
Vuitton now has 56,000 employees, of which 60% are based abroad. The internationalization of Vuitton is important. To conduct our case study, we will proceed in three stages. We will construct the SWOT (its strategic capabilities and Key Success Factors) of the company Vuitton. Then we will analyze the strategy itself (segmentation, targeting). To conclude, we recapitulate what we have seen throughout the analysis, and present our opinion on the future of Vuitton.
For over 15 years Vuitton has been the world leader in the international market of luxury. In 15 years, the turnover of the company has been multiplied by five and ensures the quarterly sales and 60% of the profits of the LVMH group. The mission of the LVMH group, and particularly that of the company Louis Vuitton, is to be the "ambassador of the Western lifestyle at its most refined".
The business of Vuitton is to make luxury leather goods. This logic seems to be a logical product and/or logic of growth (target turnover). In addition, Vuitton made many intangible investments in R & D and in advertising. Indeed, today Vuitton is far removed from the "wave of very conventional publicity", and is headed for porno chic commercials with, among other stars such as Kate Moss, Jennifer Lopez or Uma Thurman.
It is also important to mention that Vuitton (and the group LVMH and) have placed five imperatives or objectives: be creative and innovative, pursue excellence, preserve the image of the brand, have the entrepreneurial spirit, and be driven by the desire to be the best.
Tags: Louis Vuitton, Le Monde, Les Echos, La Tribune, luxury, internationalization, perfumes, cosmetics, fashion, leather goods, Western lifestyle, R & D
[...] SWOT Analysis For over 15 years Vuitton has been the world leader in the international market of luxury. In 15 years, the turnover of the company has been multiplied by five and ensures the quarterly sales and 60% of the profits of the LVMH group. The mission of the LVMH group, and particularly that of the company Louis Vuitton, is to be the "ambassador of the Western lifestyle at its most refined". The business of Vuitton is to make luxury leather goods. [...]
[...] section Vuitton: 150 years of profit and not a wrinkle) since 1998, and ready-to-wear shoes and jewelry (see article Vuitton and a half centuries of know-how). In conclusion, we can say that Vuitton always made sure that it remained at the forefront of creativity, while remaining within the "traditional" bounds, and maintaining its know-how which is handed down from generation to generation. In addition, we can mention the development of the Russian and Asian markets. These markets represent an opportunity for more significant growth. [...]
[...] We can also say that the analysis of the company Vuitton perfectly identifies the weaknesses and threats, and acts accordingly. We have two examples that illustrate this fact perfectly: Vuitton now designs products that are more difficult to imitate in the fight against counterfeiting, and the company wants to target a slightly different clientele and not rely only one type of client. Strategy Analysis We will now identify the company's strategy, that is to say, customer segmentation, targeting the company performance, and its position relative to the offer. [...]
[...] Vuitton is "the most successful luxury goods company in Asia." To begin the SWOT analysis, we present a summary of strengths, weaknesses, opportunities, and threats by the company. We then describe four strategic capabilities of Vuitton and three key success factors. FORCES OPPORTUNITIES Exclusive stores: Vuitton products Development of the Asian and are only sold in Vuitton stores. Russian markets; Ηοω to produce: both traditional Appeal to a young and trendy and innovative methods are used. clientele; There is no outsourcing. [...]
[...] We will first develop the four strategic capabilities (strengths and weaknesses) which are the most important with respect to the company Louis Vuitton: longevity, how to produce, reception and finally the "problem" of distribution. With respect to longevity, we can say that Vuitton has been around for 150 years. The company has always been run by the family, with know-how passed down from generation to generation while simultaneously modernizing its creations, its organization and type of products. As a result, it was able to combine tradition and innovation. [...]
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