Louis Vuitton Strategy Essay

LVMH is the worlds leading sumptuosity products classify. The strategy of LVMH is found on compounding LVMH fashion and leather beloveds. Net gross gross sales have grown 57% in the past two years. In 2001 LVMH had a operose earning growth in a slumping economy. This was due to the strength of the Louis Vuitton brand, which is the world draw in luxury goods and benefited the younger brands from the synergies that true within the somebodyal line of credit group. Each beau monde could focus on their core business design and marketing small-arm they benefited from shared out financial and technical expertise. Each single is moving toward its objective and improving sales.Mr. Carcelle do strategic plans to establish the organizations oer all(prenominal) goals. LVMHs goal is to grow faster than their competitors. The system of logic of acquiring several companies over a short period of time was based on the internal growth of LVMH. They had a strong support of brand symb ol 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 authorisation over distri simplyion. The strategy was based on the unremitting and sustainable growth of multi brands. Carcelles conceit is what continueed for the Louis Vuitton brand can and will happen for his new smaller brands. Carcelle is in for the pertinacious run and understands the time lines. LVMH is building up design teams and continue to expand and fix their worldwide hold on network. They continue to place in advertising and promotion season making the capital expenditures required to enlarge production capacity and meet the strong demand for their products.Yves Carcell is charismatic and a wordy leader. He has the ability to create and speak a realistic, credible, and attractive vision of the upcoming and improved upon the present situation. He is much at his desk well before dawn, but before sitting down to an p rimal morning meeting in his genus Paris office, Carcelle, 54 invites a visitor to step on to the balcony and watch the sun boot out over the Seine. Isnt it beautiful? he asks with a delighted grin (Business Week-online June 17, 2002) His cardinal years working in sales and marketing for consumer goods companies made him the logicalperson to preside over LVMH fashion group. Carcelle is a fierce defender of his brands and it is said that he bawled out a French governing official attending a Vuitton store opening in Bangkok when he spotted her carrying a fake Vuitton bag.That for certain shows attention to detail. Carcelle is fluent in English, Spanish, and French. His view and charm make him as homely talking with shop 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 meanspirited control over a orbiculate network of factories and stores, without snuffing out the cre ative explode that gives the luxury business its luster. He was responsible for(p) for bringing in new designers to spiff up Vuittons styling and expand the product line, while terminating franchise 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 jillion in sales, and more than 80% of its $1.4 million operating profit. (Business Week-online June17, 2002)