Corporate Strategies Analysis of LVHM & Tiffany: A Report

This report analyzes the corporate strategies of LVHM & Tiffany, focusing on external and internal factors impacting the company's performance. The introduction outlines the report's scope, emphasizing the significance of corporate strategies in guiding organizational goals. Question 1 delves into external analysis, utilizing PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors, as well as Porter's Five Forces to evaluate the competitive landscape. Question 2 examines internal analysis, assessing the company's resources including human resources, physical assets, operational structure, and intangible resources to identify strengths and weaknesses. Question 3 presents a TOWS matrix to synthesize these findings, identifying opportunities, threats, strengths, and weaknesses. The conclusion summarizes the key findings and strategic implications. The report provides a comprehensive overview of LVHM & Tiffany's strategic position within the luxury goods market.

Applied Corporate Strategies

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
.........................................................................................................................................................3
Question 1........................................................................................................................................3
External analysis..........................................................................................................................3
Question 2........................................................................................................................................6
Internal analysis...........................................................................................................................6
Question 3......................................................................................................................................10
TOWS matrix.............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Corporate strategies are a plan of organization strategies in which they make plan in their
strategies to improve the working of the organization. It helps in deciding the overall
organizations goals and other objective in which company is focusing to develop and grow.
Strategies help in finding the vision and directions of the organizations (Childs, 2019). LVHM &
Tiffany and the industry, the report will discuss all important of factors and external factors of
LVHM & Tiffany and its Porters five forces about the competition in market. It will also include
the competence of what the LVHM acquire Tiffany to work and find all the importance objective
of the working with Tows matrix, value chain and VRIO table. Tows of the company is also be
explained in the report so that the opportunities and the threat, weakness and strength can be
measured (Jain, Kashiramka and Jain, 2018)
.
Question 1
External analysis
External analysis mentions to the inspection the situation of the industry working in and it
contains factors as competitive assembly, positioning and dynamics.
Pestle Analysis:-
It is one of the concepts of marketing, this is one of the tools to identify the tracking and
situations of the organizations external environment in which they are operating and in which
they are planning to make a product or product launch. Pestel analysis include the political,
economic, social, technologies, legal and environment etc in it (Banik and Lin,2019).
Political Factor: - The political factor refers to the factor of business which are related to
politics and political guidance. Those factors of business which have government influence and
influence in economy. For example; it involves all the government policies such as government
taxation, duty on imports and every factor that is included in generating revenue for organisation
and structure including of policies for taxation, trade tariff and monetary policy. Government
changes about fiscal year and this can disturb business and commercial environment to great
extent. Political factor is also a threat to the company as high rates of tax and policies are reason
for influencing prices of the products of company. Political factors are all the political
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interference and the laws and policies made by government are having direct impact on the
business and the organization are included in political factors.
Economic Factor :- Economy factor refer to all the economy activities which are directly linked
with the company and is connected in its operations and working. Economy factor are crucial
factors in the performance of economy which directly is impacting the working of company and
also impacting the long-term impact by surrounding on it. Economic is a threat to the LVHM &
Tiffany as increase in inflation rates forced the corporation to raise the prices and disturb the
success. All the economic stability and the issues of the economic situation of the country and
the location where the organization is working are included in economic factors of the
environment.
Social Factor: - Social factor are those which affect the working of the organization by the
market and culture trends which are going in the social platform (Song, Sun and Jin, 2017)
. The changes in demographic market and the population and other social factor which directly
affect the working of the company and LVHM & Tiffany are putting a lot of focus in dealing all
the factor to make it better and find goals for the company. The change in the work pattern of the
market in which the company is working in and the potential market change and structure which
affect the LVHM & Tiffany. The social factor works as the opportunities for the company as it
helps in increasing the business with developing the business according to market changes and
market trends.
Technologies Factors: - Technologies factor is the technologies LVHM & Tiffany are using in
making the business grow and work easy. They are the external environment factors which have
a direct impact on the business and also plays an important role in business. Working in an
luxury brand and the jewellery industry the technologies plays very important part as it helps the
work in development and also increase the process of working fast with better quality in it.
Technologies is an opportunity for the business and the LVHM & Tiffany are taking all the
measure to develop the company profile with more of the technology’s adaptation in its working.
Legal factors: - legal factor include all the process of working of company in legal and ethnical
ways so that they can work easily and work with all the laws and regulations. The LVHM &
Tiffany need to maintain all the legal workings which are affecting the business directly and
indirectly in its working. They need to focus in developing the best of the techniques to satisfy
the norms of legal factor. LVHM & Tiffany are making the strategies which full fill all the
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legislation of the country and make sure that the working does not get affected due to legal
factors. Legal factor is a Threat to the company as it can affect the working and can take legal
actions against the company and also increase the pressure of government policies.
All the legal laws related to the organization working are need to be full fill in the best ways so
that the business does not get affected.
Environment Factors: - Environment factors refer to the factors of the business which is
connected to environment and are influenced by it (Pan, Chen and Zhan, 2019). It directly and
indirectly affects the company working and have a crucial affect as environment is one of the
most important part of business. Environment factors works as a threat for the company as
LVHM & Tiffany works in jewellery and luxury and environment can affect by natural
climatise. The environment issues which can cause the impact on the business need to be full fill
by the organization and need to be aware about the resources of the environment they using does
not get wasted.
PORTERS FIVE FORCES
 Threat of new entrants (Low)
The investment which is going to be required to be able to enter this industry is need to have
a good financial condition as it have a lot of investment in product and place. Company has
already made a lot of investment to be able to gain a brand image and reputation for themselves
in the market. There are a lot of competitive advantage as will which the organization is having
by getting governmental help as well so that they can operate effectively in the market.
 Bargaining power of buyers (High)
Company has already made changes in their products according to the customers which is
having them have an upper hand on this factor. It is important for the organization to have an
upper hand so that they will be able to function effectively. The pricing of organization is set
according to the customers so that the customers are going to have higher quality products at low
cost which is going to make the organization have higher sales and profit margins.
 Bargaining power of suppliers (Medium)
There are a lot of suppliers and contacts which Business has been able to develop for them
which makes it easier for them to shift from one product to another so that the supplies are going
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to be good in the company. Cost saving methods on raw material is being used by of best
outcomes so that the standards and quality of the customers can be matched by the company.
Sometimes the customers do try to make profit from large organizations but to have higher profit
margins LVHM & Tiffany they shift their supplies from one supplier to another so that there are
going to be higher profitability which is going to be present.
 Threat of substitute (High)
Products which LVHM & Tiffany is dealing are very easily going to find a substitute for
them in the market. There are patent laws and rights which are made by the government which
the organization is having for their products which is making the company have higher sales. The
competition in the market is also increasing and because of that the industry is shifting and
getting in a lot of innovation as well so that there is going to be higher performance. The larger
the organization the more suppliers they will be getting and demands are going to be matched by
the organization better.
 Rivalry among existing competitors (Medium)
There are a lot of companies which are present in this industry which is a great threat
for company. The products and services of company is being maintained in the market so that
the results of the business are going to be present and that is going to make the performance of
the organization higher. There are a lot of attract measures and methods to get in new customers
which are being used by the LVHM & Tiffany but there is a strong base as well which the
company is having so that they can get the right customers in the organization.
Question 2
Internal analysis
Internal analysis is about identifying and analysing capabilities of company and its
viability in market. Internal analysis provides data and information about company using
different models. Internal analysis outlines strengths and weaknesses of LVHM & Tiffany and
also inform about opportunities and threats for company.
Resources:
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 Human resources
Human resource of the organization is need to be one of a kind so that the organization can run
all the process and working in the best ways with well utilisation of resources. This is a great
strength which company is having for them so that the management and functioning is going to
be present in the organization. There are going to be a lot of risks which are going to be involved
in the organization if there is going to be no good management and the objectives and goals as
well are not going to be achieved (Jelassi and Martínez-López, 2020). Stability in the market is
going to be present and betterment is going to be present in the company.
 Physical assets
This is the strength of business since they have a lot of physical asset with themselves and will
help the company to have more technological aspect as well as be able to expand themselves
overall (Nurmi and Niemelä, 2018). There is a lot of physical premises and equipments which
are there so that there is going to be telecommunication which is going to be present which
would make the target have higher performance.
 Operational structure
There is going to be higher productivity and decision making practices which are going to be
present and make the communication higher. There is going to be smoother functioning which is
going to be present in the company so that the goals and objectives of the organization can be
achieved easily.
 Intangible resources
The company is having a strong brand image in the market for themselves which is a great factor
so that there goodwill and patent. There are so many changes which are coming in the market so
that there are going to be higher value for the organization which is going to be present. The
company has to focus on having profitability in the market so that there is going to be higher
sales and profit margins are going to be present. The company need to expand themselves and
they need to improve on their brand reputation as well globally so that there are going to be more
customers which are going to come in the organization (Nicula and Spanu, 2019).
 Knowing what makes you different
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The company has to be sure about the services and facilities which they are providing to the
customers have to match their standards and expectations so that there are going to be higher
performance which is present. There has to be additional uniqueness in the organization so that
they can compete with the competitors in the market which is going to make the services and
demands of the customers increase. There are a lot of difference which are going to be present in
companies and to get a competitive advantage there must be good competitive advantage which
is good for the brand image in the market.
 Financial resource
The company has to position themselves in the market so that there is going to be good
stability which is present. The clients have invested a lot in economic stability of the business so
that there is going to be higher resources and make right decisions so that the company can have
higher performance.
Competence :-
Value Chain:- Value chain analysis aims at analysing internal factors of an organisation and how
they can appropriately cost their products. Value chain analysis also helps in identifying values
of different activities and comparing it with competitors of LVHM & Tiffany. In order to analyse
value of different activitiesPorter have divided activities on the basis of primary activities and
supportive activities. Important am of analysing different activities is to identify which activities
are beneficial for organisation and its profitability and efficiency. Through value chain analysis
basic primary and supportive activities of chain are analysed and this also explain Logistic and
functions in value chain. Through this organisation can also explain development and
procurement of Technologies and human resources.
Primary Supportive
1. Inbound logistics refers to activities through
which raw material and inventory is acquired
by organization for further operations.
2. Operation of the value chain creating
activity which can help in convert the inputs in
1. Procurement is about Sourcing raw material
for business and insuring best prices for raw
material at best quality.
2. Technologies development refer to the
involvement of research in the supportive
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way.
3. Outbound Logistics are found necessary
aces of finished product to the customer,
warehousing and so on.
4. Marketing and sales are activities which
include the main activity related with buyers
and buying of product and services.
5. Service and activities that maintain and
improve the product and value consisting of
customer support and services.
activities to advance the technologies.
3. Human resource management involve the
hiring of the people and continuing the
development and training, and compensation to
the workforce.
4. Firm Infrastructure including the financial
resources and the legal quality management.
Primary:- Inbound logistics include acquisition of raw material and its storage and control. After
inbound logistics next activity is converting raw material and inventory into finished goods that
can be sold this is known as operations. Outbound Logistics is in value activity through which
goods are provided to customers. Marketing and sales is an process through which organisation
communicate about its product to customers and sale the product to customers. Sales of the
product lead to another value with that is service in which company provide maintenance service
to its customers regarding products that have sold to customers.
Supportive:- Supportive activities in value chain are those activities that support effective
completion of primary activities of LVHM & Tiffany.. These are human resources, infrastructure
of organisation, technological development and procurement. In order to undertake primary
activities all this activities are very important.
VRIO:-
VRIO analysis has been developed by Jay. B Barney and is helpful in evaluating different
resources and capabilities of organisation.
Resources Valuable Rarity Imitable Organized
Physical YES YES NO YES
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resources
Human resources YES NO NO YES
Equipment YES NO YES YES
Technology YES YES YES YES
VRIO analysis help the company in finding of the best results about LVHM & Tiffany and
provide one of the best ways in finding the answers and the solution of all the queries. VRIO also
helps in explain the physical resources and show the rarity and value of LVHM & Tiffany and
also find the organised and imitable technologies (Lopes, Oliveira and Silveira, 2020). The core
competence is which is best for the LVHM & Tiffany as they are focusing in development of
technologies so that they can increase there objective and find the business goals which they are
working for.
Question 3
TOWS matrix
TOWS Matrix Strength
 Strong technological
infrastructure
 Products and services
 Human resources
 Goodwill
Weakness
 Neeed to changes and
focusing on new design and
better promotion activities
of company
 High pricing strategy
need to be developed
according to market
fluctuations..
Opportunity
 Collobration in both
 Expansion in service
sector with product
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help them raising the
luxury standards to
next level
 Growth of social media
usage.
designing.
 Can capture new
market in other
countries with such
great goodwill.
Threat
 Climatic changes
 Legal restrictions
 Political activity
 Legal restriction from
government.
 Change its products and
services and provide
variations
Before the selection of the strategies the LVHM & Tiffany need to analyse the suitability,
acceptability and accessibility (Stoyanova and Angelova, 2018). The company is having a great
market value which help them in understanding the situation of market and both the companies
have joint to raise the luxury standards higher. The higher price of the company is both the
strength and weakness of the company as the customer are increasing and still, they are not able
to pay such high cost in market for there product which other companies are offering in lower
prices. It is one of the reason people choose LVHM & Tiffany and it is also one of the reasons
which affect the business also. LVHM & Tiffany are making a lot of changes in their new
strategies to capture new market and work on the opportunities they are getting in the market.
They are getting a lot of new ways of technologies adaptation which help them in finding new
objectives to achieve. Expansion of the business in new market will be great for the LVHM &
Tiffany and it will also help in there development and diversification process. Providing the
services in new market and places will be great benefit for them and also will be great in
profitability of business.
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Suitability: - Suitability refer to those strategies which are suitable for the business and which
can help in great benefit for the company an also increase a lot in business of LVHM & Tiffany
with more profitability. It is important to understand the suitability of the strategies so that they
get to understand the process in wider context. Including the government into the business
strategies can be helpful for the business expansion an also for a growth in business to them.
Acceptability: - the acceptability of the strategies by the customer because the lowering of price
will help new customer to get the product who are not able to afford the company product from
long time can have the product and services from LVHM & Tiffany which will be beneficiary
for both customer and company (Vargas-Hernández and Garcia, 2019).
Accessibility: - these strategies are highly feasible for the LVHM & Tiffany as they can help the
company in development and increase in business profits and objectives. This is one of the
reasons to make strategies to increase the business and these strategies will help the company in
most feasible way and in development of business.
CONCLUSION
The report conclude that the corporate strategies are very important for the business and for the
company to develop in market and get a great knowledge about the market. The report further
concluded the external analysis and the internal analysis with there importance to utilise the best
of resources in business for LVHM & Tiffany. The porter five forces shows the rivalry which
has increased in the market with competition and the decrease in profit margin of LVHM &
Tiffany.
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