Case Study Report LVMH Essay Example | Topics and Well Written Essays - 3250 words

Case Study Report LVMH - Essay ExampleThe point analysis shows that the firm cannot be beaten despite the tough competition and hence promises a effulgent future. Thus the report essentially points out the strategic position of the firm and its present and future prospects.The valet de chambres largest luxury commodity retail group, Louis Vuitton Moet Hennessy (LVMH) functions on the basis of four parameters viz. its product line, dominion of distribution, style of communicating its product offerings to large number of consumers and its price points. The luxury goods group renders greater seismic disturbance on the first three activities for which the stress rendered by charging high prices gets mediated. Louis Vuitton had used its distribution and communication styles to decoy massive groups of customers to its beautifully ordained stores spread along the region. Furthermore, the company spends a lot on advertizement activities to create mass awareness of its products and sh ops. The price strategy followed by Louis Vuitton helps the company earn a huge margin of around 40 to 45 percent. A comparison drawn on the revenue margins of separate luxury brand companies reflects that Louis Vuitton stands far ahead in the race. The world-renowned luxury goods brand states that the maximum number of consumers belongs to the essence level groups while the rich elites constitute only a niche segment. However, Louis Vuitton observes that owing to the event of break the structure of consumer spending has countered a radical change. The consumers of the luxury goods retail chain who were not price rude(a) previously became highly aware of the changing economic situation. This resulted in a huge drop of gross revenue of such luxury commodities, which came to be observed as objects of lesser importance. Owing to the change in the merchandise condition brought about by recession the company felt the need to redesign its products to focus on their basic usage parame ters rather than making it gaudy. Thus, the price of the