LVMH in 2004: The Challenges of Strategic Integration Case
• What are some of the key components of the LVMH business model?
• What is so peculiar about the organization of the LVMH group?
• What are some of the Key Success Factors (KSF's) in the luxury industry ad what strategic factors contribute to LVMH's strength and successes?
Some of the key components of the LVMH business model are acquiring luxury brands, diversifying, and setting up subsidiaries that manage few prestige brands. The business model was to develop, acquire, and nurture premium brands. The company created small subsidiaries to ensure that the brands remained profitable. If a brand becomes unprofitable it was divested, and the company hedged its position. The business model was diversification, premium pricing, and disposing unprofitable brands.
What was peculiar about the organizational structure of the LVMH group was that the group was organized around brands. The teams used entrepreneurship and creativity to improve the ...
The key components of the LVMH business models are given. The response provides you a structured explanation of LVMH in 2004. It also gives you the relevant references.