LVMH’s company Essay

StrengthsLVMH has a strong brand positioning meaning that the troupe powerfully placed itself as a leader in the extravagance sector. The familiarity 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 little affected by scotch cycles. about 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 r regular(a)ues to sustain growth even through touch economic situations. This is ascribable to their huge customer menial across the globe accompanied by their loyalty thus, making their keenness to new markets 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 J applaud perfume by Dior, while Moet & Chandon positioned their c ommunications platform to events like the Oscars and the flourishing Globe. Those marketing strategies were aimed in consecrate 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 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 conflict of interest within the company, where LVMH would be categorised into two major segm ents fashion vs. liquor markets. However, the companys patient of acquisition of the artauction market Pury & Luxemborg has been questioned due to some denunciation 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 festering market in the emerging economies. The increase high net value 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 coronation in emerging countries, such as the Middle East, in their hopes that high growth rates will be evident. Moreover, LVMH was able to assess the trends in those markets specifically in Asias market in order to succesfully track them. Hence, the growth of the HNWIs wealth accompanied by the structure of investments to roll to a broader customer base would inten sify and diversify LVMHs revenue f poor.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 rise 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 aforementioned(prenominal) time. Those leather goods have been a great indicator in two 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 selective 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 racy expansion. The economic liberalization as well as, the constant development and renewing 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 hurt of revenue.