Across global markets little need for localized

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?