Applied Corporate Strategy

Applied Corporate Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.The Pestle analysis to examine the strength or weaknesses of the company...........................3
The five forces according to the low, high or moderate effect and its impact on industry.........4
2. Internal Analysis Resources & Competences.........................................................................5
3. Strategic Evaluation according to the feasibility, suitability and acceptability of the LVMH.
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The corporate strategy is defined as a long term vision for the company, acquiring to create the
corporate value and motivate the workforce in order to achieve the customer satisfaction. The
LVMH is largely known for the luxury retail brands that covers the business group of the leather
and fashion goods in the UK. The report explains the detail analysis of the internal or external
environment of LVMH.
MAIN BODY
1.The Pestle analysis to examine the strength or weaknesses of the company.
This analyses help in understand about the operating challenges that any firm appears to face or
take and this may prevent the investors from entering into any risk for instance if its about the
political instability or facing economic recessions. Lets start the LVMH issues regarding the
weaknesses or strength that may impact its business performance more in detail below -
Political – This factor become the threat for the LVMH as the high import duties will effect the
profitability of the company. Countries like China impose the very large amount of the import
duties that creates the significant cost difference from other countries (Shtal,,”and et.al” 2018).
Hence, its vital for the LVMH that its presence in those nations where the tourist attraction are
more because the buyers will purchase from those foreign market where they can enjoy the price
differentiation.
Another threat for the LVMH is that they may face some exemptions from the countries where
it operate. UK's political decisions based on some European union has generate a circumstances
of uncertainty and political instability in United Kingdom nations like in Scotland or England
and that they may create some long term consequences on the LVMH.
Economic – This factor becomes an opportunity for the company if they made their investment
in the developing countries like Bangladesh or India as because this countries will provide the
labour with the vary less cost and as a result the LVMH can reduce its price (Aithal,, 2016) . As
this nations also expand its growth and make huge development, hence they will become the
huge source of profits for LVMH.
Social – This factor is greatly impact the company in terms of providing greater opportunity as
LVMH has already a enjoy its brand value in the European market so the people in the France
always try to attract more on the European brands as compared to Asian or North nation brands.

The company need to more focus on the market segmentation as the LVMH is known for its
luxury brands so they cant sell there products on those countries where the majority is of middle
or lower class people.
Furthermore, if the company should possess a through understanding of the buyers in regard with
their lifestyles, their qualification or the segments or beliefs of the society that would assist the
company in its marketing or production department (Aziri,and Ismaili,2020). The class
distribution is nearly paramount functions for the LVMH tot perform in its management
processes so that they market there goods or services in those sectors where the buyers are more
capable of purchasing the high profile products. All this factor will definitely lead to an
organisation to become a successful venture in the long run.
Environmental – As the LVMH is producing the leather goods, Fur coats which are made from
the animals skins, therefore the company is not rated up to the mark as per the Animal Welfare.
Also, the company is nowhere mention about the importance of the environment like producing
the harmful chemicals or reducing the gases that realises from the factories (Dandage,,
Manthaand Rane, 2019). The LVMH must work on those factors in its operation to bring
sustainable methods as customers like to attract those brands which doing something for the
environment.
The five forces according to the low, high or moderate effect and its impact on industry.
The Porter five forces is refers as guidelines in which an organisation can examine its
competitive environment so that they can shape them accordingly and its effect on the
profitability or growth. Its essential tools for the company in improving the potential and can
adjust its strategy in order to suits its management. The below paragraph will provide those five
factors in detail.
Competition in the industry – The competition is high in the market where the LVMH is done
its market. There are companies available in this industry for example Gucci, Burberry and
Kering Group and have the strong brand value in the UK. They all are competing in the same
market on providing luxury cloth wear and accessory goods in order to fulfil the demand based
on the customers requirement and become the direct competitors of LVMH (Croain, E., 2017).
As those industries is rapidly enlarging and it is expected to develop its market share more in the
future.