Essay on Lvmh Equity Valuation
BI4242 Global Strategic Management
Submitted to A. Pattana Boonchoo
November 25, 2005
The mission of the company is to be a successfully managed multi-brand group in the fashion industry, producing luxury products that will be enjoyed by affluent, style-conscious consumers.
Performances: After the new CEO get on the stage, the company starts increase its revenue. Now the company use acquisition strategy to growth. And now they already acquire 2 companies YSL and Sergio Rossi.
Current strategies: At the corporate level, the company operates in two directions, which is vertical and horizontal. Horizontally, the company purchased …show more content…
Integration of major strategic issues: (See appendix 2 for detailed analysis of SWOT) The main strength that Gucci possesses is their creativity in establishing their business, no matter in the case of the design of clothing or their brand image and their management. Their main weakness is their lack of multi-brand experience. They have to adjust their management styles to fit the changes in the corporation. The opportunity they should seize is how to better use the internet as a tool. Maybe they don’t have to sell their products on line, but it is definitely suggested to create a stronger presence of the brand “Gucci” on the internet. The main threat now can come from two aspects: consumers are much less loyal to one brand than before, and that many counterfeit products can be bought in many places, causing not only a loss of sales but also corrupting the brand name.
CI1: exclusive competition of market for example, LVMH and PRADA. 35 companies shared 60% of the luxury goods market. From the revenue excess 1 billion, LVHM topped the first.