Louis Vuitton Strategy Essay

LVMH is the worlds leading lavishness products group. The strategy of LVMH is base on combining LVMH fashion and leather goods. Net gross sales have grown 57% in the past two years. In 2001 LVMH had a strong earning growth in a slumping economy. This was due to the military unit of the Louis Vuitton stain, which is the world leader in luxury goods and benefited the younger brands from the synergies that developed at heart the seam group. distributively company could focus on their core business fancy and marketing while they benefited from shared financial and technical expertise. Each one is moving toward its objective and improving sales.Mr. Carcelle made strategic plans to ensnare the organizations all all overall goals. LVMHs goal is to grow faster than their competitors. The logic of getting several companies over a short period of time was based on the internal growth of LVMH. They had a strong support of brand image they are number one in the world with 50 brands and have a strong presence in all luxury sectors. They have a good geographical balance and control over distribution. The strategy was based on the constant and sustainable growth of multi brands. Carcelles thought is what happened for the Louis Vuitton brand can and will happen for his new littler brands. Carcelle is in for the long run and understands the time lines. LVMH is building up design teams and continue to expand and renovate their worldwide store network. They continue to site in advertising and promotion while making the capital expenditures unavoidable to increase production capacity and meet the strong demand for their products.Yves Carcell is magnetised and a visionary leader. He has the ability to create and articulate a realistic, credible, and attractive vision of the future and improved upon the present situation. He is much at his desk well before dawn, but before sitting stamp out to an early morning meeting in his Paris office, Carcelle, 54 invites a vi sitor to step on to the balcony and watch the sun rise over the Seine. Isnt it beautiful? he asks with a delighted grin (Business Week-online June 17, 2002) His 20 years working in sales and marketing for consumer goods companies made him the coherentperson to preside over LVMH fashion group. Carcelle is a fierce shielder of his brands and it is said that he bawled out a French government positive attending a Vuitton store opening in Bangkok when he spotted her carrying a fake Vuitton bag.That certainly shows attention to detail. Carcelle is fluent in English, Spanish, and French. His experience and charm make him as comfortable talking with give away managers and designers as he is conducting high powered business negotiations with CEOs. He oversees LVMHs most valuable portfolio of brands. He must also keep filthy control over a global network of factories and stores, without snuffing out the inventive spark that gives the luxury business its luster. He was responsible for b ringing in new designers to spiff up Vuittons styling and expand the product line, while terminating immunity agreements so that LVMH regained exclusive control of retailing. Carcelles leadership has been effective. Last year, render largely by Vuitton, the fashion group accounted for nearly 30% of LVMHs $10.8 billion in sales, and more than 80% of its $1.4 billion operating profit. (Business Week-online June17, 2002)