LVMH’s company Essay Example for Free

LVMHs company EssayStrengthsLVMH has a strong brand positioning meaning that the company strongly placed itself as a leader in the sumptuosity sector. The company offers more than 60 brands of high value perception and identity to their customers. Due to high customer homage, token of their brands and value perception those brands are less impact by economic cycles. Most evidently, LVMH expressed resilience against the economic conditions specifically in 2009 and 2008. This is an forefinger that the competency of their brands enables their revenues to sustain ontogeny even through touch economic situations. This is collectable to their huge customer base across the globe accompanied by their loyalty thus, making their penetration to new grocerys with quick.The associations of LVMH with celebrities and major events have enabled them to enhance their luxury positioning. For example, Charlize Theron represents the Jadore perfume by Dior, while Moet Chandon positioned thei r communications platform to events interchangeable the Oscars and the Golden Globe. Those marketing strategies were aimed in order to increase their brand visibility and recall. Moreover, their customers are targeted successfully through enhancing their brands images. All in all, those associations would eventually augment the luxury and its value that LVMH aims at building.WeaknessesA shortcoming in LVMHs company is their limited presence in the retail division. This means that the company is highly conditional on sales to retailers. This in turn has caused the companys luxury goods vulnerable to destocking by their retailers in order to avoid losses. Most evidently, the wines, jewelry, and watches departments were highly affected negatively by the retailers destocking. Therefore, this has made LVMHs revenues in danger of destocking made by retailers.There is also a weakness evident in the date of interest within the company, where LVMH would be categorized into two major segme nts fashion vs. liquor markets. However, the companys broad acquisition of the artauction market Pury Luxemborg has been questioned due to some criticism that it adds more burden to LVMH. This is yet another criteria to the conflict of interest believed to be internally dealt within the company.OpportunitiesThe luxury market is believed to be a growing market in the emerging economies. The growing high net worth individuals (HNWI) in a lot of countries across the globe is an indicator that the sales of luxury products are estimated to increase. In effect, LVMH has been focusing in increasing their investment in emerging countries, such as the Middle East, in their hopes that high process rates will be evident. Moreover, LVMH was able to assess the trends in those markets specifically in Asias market in order to succesfully penetrate them. Hence, the growth of the HNWIs wealth accompanied by the structure of investments to reach to a broader customer base would intensify and diver sify LVMHs revenue flow.LVMH owes a big deal of their market share to their products on womens accessories. This would include their brands in handbags, jewelry, and watches amongst many others. Although the fashion accessories has seen a downfall during 2009 nevertheless, it is hinting that it is uprising to a recovery into growth since 2010. Most notably, women handbags were the some notable in the accessories market growth inversely reacting to the markets decrease during the same time. Those leather goods have been a bully indicator in both the men and womens categories in the market share that there is a high growth of sales and revenue. Even if recognize markets have been experiencing low growth due to the economic collapse and recovery, the accessories market proves as an opportunity to LVMH for growth.Selective retailing provides an opportunity to LVMH in one of the most growing markets in the world China. Even though discriminating retailing has seen a decline in growt h due to restrictions in spending due to less amount of travelers however, China tourism is predicted to show a robust expansion. The economic liberalization as well as, the constant development and transformation in China boosted their tourism industry. Some indicatorshave been predicting that China would be a leading tourism destination by 2020. Therefore, LVMH has been focused on launching its selective retailing in China in order to take an advantageous stance from this growing tourism in terms of revenue.