LVMH Moët Hennessy Louis Vuitton SE
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Transcript of LVMH Moët Hennessy Louis Vuitton SE
Team 19– BIEM 16 A.Y. 2015/2016
Milan Salevic Alice Schenato Igor Schetselaar Nicola Sita Sophie Marianna Smereczynski Silvia Solitario
N°1World Luxury Leader
70
Houses
120,000Employees
€30.6 BillionRevenues in 2014
3,700Stores
WINES& SPIRITS
Belvedere Dom Pérignon
HennessyKrug
Moët & Chandon
Six business groupsto represent the Western ‘Art de Vivre’
FASHION& LEATHER GOODS
Louis VuittonFendi
Donna KaranMarc Jacobs
GivenchyPucci
PERFUME& COSMETICS
Christian DiorGuerlainGivenchy
KenzoAcqua di Parma
Make Up For Ever
WATCHES& JEWELRY
TAG HeuerHublotZenithBvlgari
De Beers
SELECTIVERETAILING
DFSStarboard Cruise
Services
SephoraLe Bon Marché
Rive Gauche
OTHER ACTIVITIES
Les EchosRoyal Van LentCheval Blanc
History
Bernard ArnaultChairman and CEO
$4 billion deal
1854
1885
1888
1896
1987
1989 90’s 200
0200
1200
8201
5
1743
1971
261 boutiques15 global storesIPO
Economic crisis
Changes Name
Institutional Structure
Shareholders
Employees
Suppliers
Banks
Customers
Government
Governance Structure
Bernard Arnault#66 Forbes’
“World’s Most Powerful People”
Board of Directors
Executive Committee
Organizational Structure
Groupe Arnault
LVMHFashion & Leather GoodsR&D, Marketing, Finance etc.
Wines & Spirits
R&D, Marketing, Finance etc.
Perfumes & Cosmetics
R&D, Marketing, Finance etc.
Watches & Jewelry
R&D, Marketing, Finance etc.
Selective Retailing
R&D, Marketing, Finance etc.
Other Activities
R&D, Marketing, Finance etc.
Christian Dior SA
Christian Dior Couture
Corporate Social Responsibility
Financed by contributions from each
Maison, calculated using gas emissions (15€/t of
CO2)
LIFE - LVMH Initiatives For the Environment
“The most beautiful materials used in viticulture and oenology , the creation of perfumes and cosmetics, fashion and leather goods and jewelry which are the heart of our business, are all provided by nature.
Today respect for the environment is not only an imperative, it is also a lever that drives progress”Bernard Arnault
Quality of life in the Workplace
Respect for the Individual and Diversity
Support local area development
Environmental performance
The LVMH Spirit
Innovation & Creativity
Excellence of products and service
Brand image
enhancement
Entrepreneurship
Leadership - Be the best
Financial performance
Cross Industry ComparisonCompany Name Operating Revenue Net income Total Assets ROEChristian Dior SE 42.317.926 1 1.946.264 3 83.533.651 1 4, 70% 11
LVMH SE 37.204.899 2 6.857.240
1 64.786.836 2 24,55
%4
Industria De Diseño Textil SA
20.480.750 3 2.826.8712
17.383.705 3 23,89%
5
V. F. Corporation 12.282.161 4 1.047.5054
9.980.140 5 18,60%
7
Brightoil Petroleum Ltd
10.903.221 5 74.79710
3.157.642 9 7,68% 9
PVH Corporation 8.241.200 6 439.0008
10.931.800 4 10,06%
8
Zhejiang Material Industrial
6.161.465 7 58.74911
4.954.963 7 4,93% 10
Hermes International SA
5.004.280 8 1.042.6705
5.789.074 6 24,83%
3
Michael Kors Holdings Ltd
4.371.469 9 881.0236
2.691.893 10 39,31%
2
Burberry Group PLC 3.734.334 10 497.7247
3.216.334 8 23,17%
6
Hugo Boss AG 3.122.201 11 404.6149
2.017.592 11 39,49%
1
LVMH Stock Price
Corporate Strategy
“If you want to seduce a beautiful woman, you don’t start by raping her from behind”.
Patrick Thomas, CEO of Hermés
Diversification
Vertical Integrati
on
5-forces modelLuxury industry
Rivalry
(moderate)
Suppliers
(moderate)
Substitutes
(moderate to high)
Buyers
(low)
New entrant
s(low)
Industry RivalryOligopolyEconomies of scaleDifferentiation
Threat of new entrantsUnrecoverable expensesAccess to unique factorsPatents Learning curves
Bargaining power of suppliersHighly specialised “atelier d’art”High switching costs
Threat of substitutesMiddle-price brandsKnock-offsInternet accessibility
Competitive Advantage
Human Capabiliti
es
Intangible
Resources
Tangible Resource
s
Started from the bottom
now we here.
Organizational CultureThank you for your attention!