LVMH’s company Essay Example for Free

LVMHs fellowship EssayStrengthsLVMH has a strong brand positioning meaning that the company strongly placed itself as a attraction in the highlife sector. The company offers more than 60 brands of high value perception and identity to their customers. ascribable to high customer loyalty, image of their brands and value perception those brands are less affected by economic cycles. Most evidently, LVMH expressed resilience against the economic conditions specifically in 2009 and 2008. This is an indicator that the strength of their brands enables their revenues to sustain ripening even through touch economic situations. This is collectible to their huge customer base across the ballock accompanied by their loyalty thus, making their penetration to new securities industry places 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, whi le Moet Chandon positioned their communications platform to events like 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 dependant on gross sales to retailers. This in turn has caused the companys luxury goods vulnerable to destocking by their retailers in order to empty losses. Most evidently, the wines, jewelry, and watches departments were highly affected negatively by the retailers destocking. Therefore, this has do LVMHs revenues in danger of destocking made by retailers.There is also a weakness evident in the conflict of interest inside the company, where LVMH would be cate gorized into two major segments fashion vs. liquor markets. However, the companys broad scholarship of the artauction market Pury Luxemborg has been questioned due to some criticism that it adds more burden to LVMH. This is yet another(prenominal) criteria to the conflict of interest believed to be internally dealt within the company.OpportunitiesThe luxury market is believed to be a increment market in the emerging economies. The growing high net worth individuals (HNWI) in a crapper 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 change magnitude their investment in emerging countries, such as the Middle East, in their hopes that higher yield place 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 re ach to a broader customer base would intensify and diversify LVMHs revenue flow.LVMH owes a great 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 ascension to a recovery into growth since 2010. Most notably, women handbags were the most notable in the accessories market growth inversely reacting to the markets decrease during the same time. Those leather goods have been a great indicator in both the men and womens categories in the market share that there is a high growth of sales and revenue. Even if key 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 se lective retailing has seen a decline in growth due to restrictions in spending due to less amount of travelers however, China tourism is predicted to show a naughty 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 cerebrate on launching its selective retailing in China in order to take an good stance from this growing tourism in terms of revenue.