Louis Vuitton Strategy Essay

LVMH is the worlds leading extravagance products group. The scheme of LVMH is found on combining LVMH fashion and leather goods. Net 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 specialness of the Louis Vuitton tarnish, which is the world leader in luxury goods and benefited the younger brands from the synergies that developed indoors the line group. separately company could focus on their core business innovation 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 strengthen the organizations everyplaceall goals. LVMHs goal is to grow faster than their competitors. The logic of getting several companies oer 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 h ave 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 smaller 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 garb in advertising and promotion while making the capital expenditures ask 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 a great deal at his desk well before dawn, but before sitting reduce to an early morning meeting in his Paris office, Carcelle, 54 invites a visitor 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 cardinal years working in sales and marketing for consumer goods companies made him the reproducible person to preside over LVMH fashion group. Carcelle is a fierce withstander of his brands and it is said that he bawled out a French government formalized 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 blackleg 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 puckish control over a global network of factories and stores, without snuffing out the fictive spark that gives the luxury business its luster. He was respons ible for bringing in new designers to spiff up Vuittons styling and expand the product line, while terminating exemption agreements so that LVMH regained exclusive control of retailing. Carcelles leadership has been effective. Last year, fuel 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)