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industries that develop constant good returns is crucial. This will not only bring more profit to the company, but it also will increase shareholder value, which is the utmost important thing for a company.The business strategy adopted by Bernard Arnault centered on the sale of luxury products and services utilizing retail channels. Did the use of retail channels enhance or detract fromthe diversity of LVMH products and services? Be detailed and expansive in your response.Bernard Arnault did a lot of good for LVMH. In our textbooks, it states “Bernard Arnault believed that LVMH control of the retail channels where its products were sold was critical to thesuccess of luxury brands.” (p.C-293) This direction that Arnault moved into not only allowed company-owned retail locations to ensure high-quality fashion products, but also it ensured that the retail locations offered the highest level of customer service. Arnault focused on the finer details with retail, as he believed that the overall image was just as important as the company’s attributes themselves. This move into company controlled retail channels enhanced the company in many ways and was an overall effective move for LVMH.LVMH largely sought to diversify by acquisition of related businesses in the luxury brand market. Describe the concept of “strategic fit” as it applies to LVMH. Did LVMH effectively leverage a strategic alignment with acquisition targets?