Lvmh Analysis

Bags-to-Bubbly

How can a company make billions of dollars mainly selling purses and alcohol? Louis Vuitton Moët-Hennessy, often shortened to LVMH, does just that. This company is the leading provider of luxury goods, including leather goods, sunglasses, jewelry, watches, perfume, cosmetics, clothing, wine, spirits, and recently yachts. They make just about anything a well-to-do person could want. Louis Vuitton and Moët-Hennessy merged in 1987, even though the oldest of their brands dates back to the 1500s, and they have been expanding ever since. LVMH is the parent company of 60 sub-companies in 57 countries, and they presently employ about 56,000 people in over 2,000 stores. The main headquarters for the company is located in Paris, France. LVMH as a whole generates about $24 billion in revenues yearly. You may have heard of a few of their brands such as Louis Vuitton, Dior, Marc Jacobs, DKNY, Sephora, Fendi, TAG, or Givenchy just to name a few. The CEO Bernard Arnault and his family own 48% of LVMH, and he is the 14th richest person in the world.

The mission of the LVMH group is to represent the most refined qualities of western art around the world. “LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy,” Arnault says. The company’s five main goals or values are (1) to be creative and innovative, (2) to aim for product excellence, (3) to “bolster the image of our brands with passionate determination,” (4) to act as entrepreneurs, and (5) to strive to be the best at everything they do. LVMH also tries to protect the environment by using water sources sparingly, optimizing energy use, implementing a program that monitors waste, and recycling leftover materials.

The success of LVMH is hugely dependent on external environmental factors. The competitive factor has the most potential to impact the company in the near future. The market...