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Strategic Management Assignment - LVMH

   

Added on  2020-10-22

10 Pages3120 Words483 Views
STRATEGICMANAGEMENT MODULE

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11.A) Main Characteristics Of Top Range Watch Industry..........................................................1B) Challenges Faced By The Lvmh In Top Range Watch Industry...........................................22. LVMH and Top Market Watch Industry: Response to Competition andSustaining Success.....................................................................................................................43. How LVMH achieved its success...........................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONIn this report various strategic management used by certain industry is been studied. Forthis LVMH is been taken for determining strategies used by top range watch industry. Maincharacteristics are being identified for luxury watch market which makes them stand out from thegeneral watch industry. The report Identifies different strategic approaches and theories used formeasuring the challenges faced by company. Strategies for improving company's currentcompetitive position in luxury watch market are determined and identifying how they haveachieved its success or position in luxury market.1.(A) Main Characteristics of Top Range Watch IndustryLVMH also known as Moet Hennessy Louis Vuitton SE, is a French multinational luxurygoods conglomerate, headquartered at Paris. With the merger of fashion house Louis Vuittonwith Moet Hennessy, company was formed in 1987. It is considered as one of the largest luxurybrand worldwide (Watches-jewellery LVMH 2018). Below listed are some main characteristics of top range watch industry:The global watch industry is dominated by few countries: In luxury segmentSwitzerland has a near monopoly position in the market, which manufactures about 29.3million units and their value are $22.9 billion (Frynas and Mellahi, 2015). The most well-familiar brand is one which sells most: Most of the brands are wellknown to everyone as a global brand, but little is known about their business strategiesand they neither make their accounts public. Top range or Luxury watch industry only focus only on single segment: They segmentand target only those customers who are rich and young. Other segment of the people ormarket is being completely ignored (Grant, 2016).Strong association to quality: In luxury or top range watch segment customers arealways selective about product’s quality that they use and are ready to pay for it. Inquality and design of their watches Louis Vuitton have set their benchmark.Brand recognition: Carrying luxury watches are associated with status and class insociety. Thus people prefers to carry them as a high status and recognition (Cavender andKincade, 2015).1

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