across global markets little need for localized production Cost to obtain

Across global markets little need for localized

This preview shows page 4 - 6 out of 8 pages.

across global markets, little need for localized production Cost to obtain access to global markets Increase bargaining power over buyers & suppliers to boost market share Already global market share leader; power of buyers and suppliers in the luxury segment is already weak Slowing demand for certain categories of luxury goods due to changes in fashion and tastes Enhance flexibility & dynamic capabilities via product innovation Potential to develop ‘tailored luxury products’ to serve focal markets in emerging economies such as China or Brazil Unknown impacts of innovation on existing luxury product life-cycles (10 – 20 years) Ultimately, it may become quite difficult for LVMH to maintain such a broad portfolio of luxury brands, and some of the underperforming brands or groups may need to be sold or spun off. n While luxury is a strong-return business, building yachts, developing and maintaining boutique hotels in exotic locations, developing real estate for new stores, and providing customers with exclusive in-store experiences can together be expensive and drag down returns on capital. 3. Is LVMH’s international strategy best characterized as a multi-domestic strategy, global strategy, or transnational strategy?
Image of page 4
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 8 pages?

  • Staff
  • Financial Ratio, Luxury good, LVMH, Teaching Note LVMH

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture