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Swot Analysis of Lvmh

Autor:   •  May 9, 2013  •  Case Study  •  451 Words (2 Pages)  •  853 Views

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SWOT Analysis of LVMH

Strengths

1.Strong brand awareness

2.Broad product portfolio

3.Strict quality control

4.Multi-brand strategy

5.Celebrity endorsement and star marketing

As a leading French conglomerate in the luxury goods industry, LVMH has established strong brand awareness. Its brand recognition is unparalleled in the luxury world. What makes Vuitton unique, in fact, what makes the most profitable luxury brand on the planet is the relentless focus on quality. LVMH’s extremely diversified brand portfolio, high quality received high praise among the general customer. Its brand portfolio consists of approximately 60 different companies selling diverse products such as leather, jewelry, clothing, perfumes, and alcohol. LVMH enjoys a geographically diversified revenue stream with signify portions of revenue coming from France, greater Europe, Asia, Japan, and the United States. Furthermore, in order to sustain its high-end brand positioning and finest quality, LVMH has strict control over quality and rarely depend on outsourced manufacturing and procurement.

Weaknesses

1. High cost structure, weak price elasticity and low production efficiency

2. Unaffordable price

3. Less invested in jewelry brands versus competitors

Even though some of LVMH’s brands are extremely expensive, the operation costs of them are also very high. And the revenue of group might be affected by its unaffordable price of luxury goods and comparatively low production efficiency. Furthermore, LVMH is considerably less invested in fine jewelry and watches,

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