Louis Vuitton is one the world biggest brands in the luxury apparel segment. It essentially caters to a niche market segment due to its high prices and exclusive apparels. Louis Vuitton is a flagship of the Moett Hennessy Louis Vuitton (LVMH) Group. The flagship of LVMH, Louis Vuitton has been a major driving force behind the growth of the LVMH Group. The Company has seen various changes in the operations and strategies over the years, which have helped it evolve and maintain its premium luxury market.
The mission of Louis Vuitton has been built on three rules they are ; To master his savoir, to provide excellent service to his customers and to innovate continuously.
After analyzing the case study it is evident that we can place Louis vuitton’s strategy between 1 and 2 at the bowman’s strategy clock, which focuses on product differentiation. This is because the company has differentiated products and the prices of the products are really high but still where the company remains to be very profitable. And also the customers of Louis Vuitton look only at the brand image and reputation of the brand but not at the real value prices of the product.
Resource and capabilities
The Founder-Louis Vuitton Malletier and the other owner till date.
Founders Clear vision and creativity, which was a key success factor for Louis Vuitton. Regular Innovation in productions, which helped them in overcoming their competitors. Rich experience in the industry.
Knowledge about the industry.
The high reputation of the brand helps them have a market edge over the other brand and which also lets them price their products at a higher price. Own stores, no licensing Distribution.
No counterfeit of its products, more profits.
Design and Craftsmanship. Tie-ups with designers.
New innovative attractive designs with high standards. Focus on innovation. Quality in raw material
The quality of raw material is very high which helps them in their USP and which also why their customers like them. In house Manufacturing Practices
High efficiency and productivity because of in house manufacturing. Which also helps in high quality standards and uniqueness. Financial resources.
Helps in global expansion and acquisitions. Also helped in aggressive marketing globally.
Customer service and satisfaction.
Helps in retaining the customers. Exclusivity to the customers.
The Founder-Louis Vuitton Malletier and his succesors
Louis Vuitton malletier and the other succefull heads of the organization was one of their key resources. The main reason why they are important is because they were successful and had those different capabilities which proved to be successful.
In Malletier’s case he had a great vision for his company, his creativity w¬¬as one of the main reasons for building and strengthening the brand and the key success factor. He strongly believed in creativity , innovation and service and expertise.
George Vuitton designed the monogram process which was key factor for the company in counterfeiting this shows that he concentrated in innovation as well. Product diversification of the business to different products eg:- handbags proved to be successful. He also believed and was responsible behind the expansion of Louis Vuitton in a global market which also turned out to be successful.
Bernard Arnault appointed Mark Jacobs as the head designer which was huge success. He had a futuristic strategy plan for the company, which was successful for the business. He was the reason behind the partnerships with Moet and Hennessy.
Racamiers decision to open self-owned stores was one of the key resources, which helped LV bring in more profits. He also acquired companies in luxury quality products, which enabled them to broader there, market and tap the competitor’s market share.
The brand Louis Vuitton is a main resource and an...
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