Louis Vuitton Firms Intensive Growth Strategies

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Louis Vuitton Firms Intensive Growth Strategies
Louis Vuitton Firms Intensive Growth Strategies Essay
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Updated: Aug 31st, 2022
Although the Western economies have not fully recovered from the economic crisis since 2008, the luxury business division has continued to grow steadily. The expansion of this sector has reached more than ten percent in emerging nations (Deepak & Jeyakumar, 2019). Furthermore, luxury commodities with prestige brands, such as Louis Vuitton, have continued to enter the international marketplaces (Deepak & Jeyakumar, 2019). This paper focuses on , its mission statement, and conducting a SWOT analysis of the business. Furthermore, the essay intends to apply the BCG and Ansoff matrix to the Louis Vuitton company and present recommendations to help boost the companys productivity in the post-pandemic era.

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The brand Louis Vuitton is managed by the corporation LVMH, which stands for Louis Vuitton Moet Hennessy. The mission statement of the company reflects five priorities that are shared amongst all the groups shareholders. It expects that the staff should be creative and innovative so that their products are unique from that of their competitors, and aim for product success, thus presenting the best quality goods to the market (Xu et al., 2021). Furthermore, stakeholders and the employees are supposed to act as entrepreneurs to strengthen the corporations brand with determination and represent the image of the companys trademark. Finally, they are to strive to achieve excellence in all business operations since the perseverance of the firm results in high quality of work.

As one of the top luxury brands in its trade, the firm has several strengths that can support it in remaining productive in the markets. These fortes help safeguard its marketplace portion and penetrate new marketplaces. The mechanization of operations has conveyed steadiness to the eminence of the brand and has assisted the enterprise in balancing up and down the request settings in the marketplaces (Xu et al., 2021). Also, the corporation, with its committed consumer interaction organization subdivision, has enabled it to realize a significant quantity of client fulfillment between loyal customers and good brand quality in the new markets.

Furthermore, the successful integration of complementary companies through acquisitions and mergers inclusive of technology companies has enabled it to restructure its operation and develop a stable logistics system. Over the years, Louis Vuitton has financed the establishment of a strong trademark collection which has enabled it to successfully expand to new territories (Sakhamuri & Sherman, 2019). The company has further focused on investing significant funds in the preparation and improvement of its workers resulting in an employee network that is extremely skilled and determined to attain supplementary success.

Despite having numerous strengths, Louis Vuittons weaknesses have also impacted its success in various operations. The business has a higher erosion frequency and is compelled to spend more on the training and development of workers compared to its competitors (Xu et al., 2021). The company has continuously spent more than its competitors in R&D but has not successfully competed with the principal firms in commerce in terms of invention. Finally, the business day inventory is usually high compared to that of its rivals, thus making it invest more in the channel and impacting the long-term growth of the company.

However, opportunities, such as increased consumer spending and economic uptick after an economic slump and decelerated growth proportion of the business sector, will enable the organization to capture potential consumers and gain market advantage. The presence of an online client channel has also compelled the company to invest a significant amount of capital into the online market, thus opening a new sales network for the brand (Sakhamuri & Sherman, 2019). Finally, the state administration green drive presents a prospect for obtaining the corporation goods by the government and federal government contractors.

The company has faced various risks throughout its business operations, such as the new environmental regulations that could be a threat to certain existing goods. Also, new technological innovations established by the competitor and market disruptor can present lasting damages to the trade (Sakhamuri & Sherman, 2019). The changing consumer purchasing trends from the online network can also present risks to the current corporal organization determined by the logistics method.

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The BCG Matrix is founded on goods rather than services despite applying to both. Louis Vuitton can use the model to review a variety of products, especially before starting to develop new commodities. Considering the luxury brand, the company has a wide range of merchandise and many different lines. The star products of a company are the merchandises that generate more Return On Investment than other commodities. Louis Vuitton is known as the place for shoes, jewelry, watches, and books at a time when choice is unlimited (Xu et al., 2021). However, in a multi-channel surrounding, the trademark is still the Western market leader with high growth and market share. Regarding question mark products, the company has developed hundreds of products before achieving a successful product, such as the and bags.

Furthermore, the dog product of the luxury brand has significantly drained resources from the organization. For instance, the high pricing of the firms watches and jewelry has compelled consumers to purchase from other brands, such as Gucci, that have premium prices on such products (Xu et al., 2021). Finally, the trademarks cash cow products, such as bags and wallets, have strong supporters and a high market share despite having slow growth. Therefore, the Louis Vuitton company should implement the BCG model to help it determine the appropriate products that will boost its profitability in the fast-growing luxury business industry.

The Ansoff Model is a tool employed by companies to assess and plan their growth strategies. Therefore, the Louis Vuitton company can use the matrixs market penetration and product development approaches to help it develop and analyze the risks associated with its markets. In the marketplace penetration strategy, the company uses its products in the existing markets to gain a market advantage and attract new clients (Schawel & Billing, 2018). The brand has successfully executed the approach by decreasing its prices, increasing its distribution and promotion channels, and collaborating with designers such as Stephen Sprouse to introduce the iconic patterns in most of its products.

Conversely, in the product creation approach, the Louis Vuitton company develops products that cater to the current market. The move has included extensive Research and Development and expansion of the corporations goods category. Since the organization has a significant understanding of its existing market, it has presented innovative solutions to help satisfy the needs of the current marketplace (Schawel & Billing, 2018). The Ansoff matrix has therefore played a significant role in building the luxury brands current status in the ever-changing business industry.

Considering the post-pandemic business operational plans, the adoption of online business operations will significantly influence the success of the company. For instance, Louis Vuitton had established a private pull-down retailer for Valentines Day via the We-Chat sub-program that permitted clients to make purchases online (Deepak & Jeyakumar, 2019). The associates shared exclusive offline promotions to consumers through QR codes which ensured that all orders were delivered within time.

In conclusion, the paper has explored marketing management as a business issue and analyzed how it influences the success of businesses by looking at three significant models. Marketing is, therefore, a commerce issue that still needs further thorough research to determine its merits and demerits to the operations of the Louis Vuitton Moet Hennessy company. Further study will help the company formulate effective policies and strategies that will enable it to remain productive despite the current COVID-19 pandemic and changing business industry.

Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management (pp 13-15). Educreation Publishing.

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Sakhamuri, T., & Sherman, H. (2019). Going Green at Mulberry: Managing brand transitions (pp 20-22). International Journal of Business and Social Science, 10(9).

Schawel, C., & Billing, F. (2018). Ansoff-Matrix. In Top 100 management tools (pp. 3133). Springer. Web.

Xu, A., Xie, Y., Su, J., & Xiao, C. (2021). Analysis of Louis Vuittons marketing strategies in Chinese luxury fashion market. Frontiers in Economics and Management, 2(1), (pp 120). Web.

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Reading time 5 min
Type Essay
Pages 4
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Subjects Business Company Analysis
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