Evaluation of Louis Vuitton

This assessment will focus on outlining market analysis of Moet Hennessy Louis vuitton (MHLV). It has also cover PESTLE analysis (macro and micro environment) , development of a TOWS identification of key critical success factors of the company along with recent market data ,information ,market analysis models to support the analysis in more effective and convincing way .This analysis contain the amount of threats, the opportunities in the environment as well as existing and potential new customers.

BACKGROUND                       

LVMH was established in 1987. Louis vuitton was a French conglomerate and emerged as one of the biggest producers of the luxury and branded goods. LVMH was formed of various groups Moet et chandon a champagne manufacturer, henessy a coqnac manufacturer and Louis vuitton a fashion house. It was divided into five sectors perfumes and cosmetics, watches and jewellery, leather goods, wines and spirits. LVMH maintains the quality, sound image and one of the bold player in the luxury goods industry with profound fixed costs scale and profit. The various types of perfumes of the LVMH are Christian Dior, Guerlain, perfumes Givenchy, kanzo perfumes.

LVMH PESTLE analysis (macro environment)

Political factors

Political factors is one of the crucial factors of LVMH which causes great influences on the market environment. Not only economic factors but the new policy, business rules and the regulation has deep rooted influences on lvmh development in uk market. According to  The Economist (2009) value added tax has increased by 2.5% which created the threat to market as there would be restriction and hindrance in consumer spending. In 2010 the household disposal income per capita also increased by 4.1%. there is also long term influences on customers buying behavior due to certain rise of net tax 6.255 billion pound spending the cuts of 8.855 billions pound in the end of 2011 and in 2015 the net rise rise of 8.23 billions and would have...