Full Strategic Appraisal of Louis Vuitton

1

Coursework Header Sheet

227988-30

Course BUSI1324: Managing Strategy Course School/Level B/UG Coursework Strategic Appraisal Assessment Weight 50.00% Tutor VJ Torlo Submission Deadline 15/01/2016

Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism.

000767837 Tutor's comments Grade Awarded___________ For Office Use Only__________ Final

Grade_________ Moderation required: yes/no Tutor______________________ Date

_______________

2

Full Strategic Appraisal of Louis Vuitton

Content Page:

Page 3: Introduction & Company Background

Pages 4-‐7: External Analysis:

PESTEL Analysis Porter’s 5 Forces

Opportunities and Threats

Pages 8-‐12: Internal Analysis

Value Chain Competencies Framework

VRIO Framework Strengths and Weaknesses

Ratio Analysis

Pages 13-‐14: Corporate & Business Strategy

Page 15: Key Issues & Challenges Pages 16-‐20: Strategic Growth Options

Pages 21-‐22: Recommendations & Conclusion

Pages 23-‐24: References Page 25: Appendix 1

3

* All references to the Louis Vuitton Case Study 2013 written by Mahbubani, M will be referred to ‘the case’ in the following paper. *

__________________________________

Introduction & Company Background The purpose of this report is to draw out key strategic issues and challenges of the Louis Vuitton Group while offering sustainable proposals to achieve further growth. A company operating based on over 150 years of rich history and heritage has meant they have been able to dominate the ‘personal luxury goods industry’ clearly indicating they offer a focused differentiated service to their 3 main consumer segments, which include the absolute, aspirational and accessible. Louis Vuitton has a wide product portfolio offered to both genders to create solid customer value and brand appeal. When referring to the case, the backbone of Louis Vuitton’s success was built on three rules including savoir-‐faire, excellent customer service and constant innovation. Farfan (2015) highlights these values are still used today as she quotes Louis Vuitton mission statement is: ‘LVMH are synonymous with both elegance and creativity. The products, and

values they embody, blend tradition and innovation’.

It’s fundamental to note, the key stakeholders of Louis Vuitton are the customers themselves. When competing in such a dense industry, products, and the services provided are tailored to satisfy the needs of customers with extremely high disposable incomes.

4

Part I: External Analysis

PESTEL Analysis Beneath is an analysis of the macro environment when referring to Louis Vuitton and the ‘personal luxury goods industry’. This is to understand how these factors influence the industry. Political This industry faces problems regarding import duties when operating internationally. According to the case, it is highlighted that countries that suffer from high import duties such as China, is causing customers to purchase luxury items overseas to take advantage of the huge price difference. Also, looking further, D’Arpizio (2012) cited by the case states outside Europe and America there are 33% of regions involved in the luxury goods market meaning government stability is imperative in this industry. According to Cebreros (2012), this industry is heavily dependent on tourism so factors involving terrorism is essential to consider. Economic One of the biggest economic factors in this industry is the tax rates being placed on luxury goods. According to Chilkoti & Hidayat (2015), the ‘luxury goods tax’ is impacting regions without a luxurious reputation so countries such as Indonesia have scraped this taxation policy in order to boost consumption. In terms of Louis Vuitton, a potential price gap may cause uncontrollable issues. Social As referenced by the case study, the luxury industry has diversified to services that include luxury travel experiences showing one of the most contributing social factor in this industry is the shift change in customer preference. Organisations operating in the ‘personal’ industry face issues as consumers can achieve luxury status by their lifestyle and experiences which firms such as Louis Vuitton cannot offer. Also demographics are a factor to consider. A big difference in culture highlighted by the case is the importance of logo brands. Where in China logos are seen as less exclusive, in Japan it doesn’t dampen the brand image at all.

5

Technological According to the case the revolution of the Internet has meant technology has had a massive impact on this industry. In order to gain competitive advantage, firms had no option but to start selling products online. The issue with operating online is it takes away an aura of exclusivity, which potentially reduces market share from the ‘absolute’ target segment. Furthermore, the case claims customer demands in this industry include being ‘unique and crafted by artisans.’ This means technology involving manufacturing isn’t a major factor. Environmental Protection of the environment is a huge factor to consider in this industry. As stated in the case many firms that operate sell leather goods, which have a huge impact on the environment. According to PETA (2015) turning skin to leather involves high-‐energy consumption and use of dangerous chemicals. This is why organisations should consider limiting their carbon footprint and preserve natural resources in order to counteract the harm they are inflicting. Legal Being in this luxury goods industry, there are many laws to consider with the biggest legal factor to consider is counterfeiting. This issue is uncontrollable as referenced by the Anti-‐Counterfeiting Group (2012) 10% of UK sales in the luxury industry is lost due to counterfeiting. This means $37 billion is lost in sales every year.

6

Porter’s 5 Force’s Analysis The luxury goods industry means Louis Vuitton face a variety of competition that is easily explained using Porter’s 5 forces model. Threat of New Entrants – ‘Extremely High’ In this industry, it is considered to be extremely high as it is argued the industry has stagnated relating to the product life cycle. As referenced by the case, companies fiercely promote the history and heritage of their brands; so in order for new entrants to build a reputation, it would take large amounts of capital to build a marketing platform and will be hard to convince customers to switch from successful brands such as Louis Vuitton. Bargaining Power of Suppliers -‐ ‘Low / Medium’ In this industry, the case provides evidence that methods of vertical integration have been extremely successful. With these firms manufacturing products in house means firms only have to source minimal materials, therefore reducing supplier power. However, the reason why bargaining power of suppliers is debatably medium is due to the high quality desired of raw materials. Such as Louis Vuitton, they only source their leather from North Europe. The perfection required in the luxury goods industry means limited suppliers can provide it. Threat of Substitute-‐ ‘High’ When referring to Blythe (2012) a substitute is a different product that satisfies the needs of the consumer. As mentioned in the case, the threat of one substitute are intangible experiences such as travelling and spas. This is due to a change in how customers express their social status. Furthermore, with research one new player that is a huge substitute product is artificial leather. An article by Kinge et al. (2013) states this material is preferred by the younger generations and vegans. As it is cheap to manufacture it would be hard for luxury companies to promote it as high quality material.

7

Rivalry Among Existing Competitors – ‘High’ When referring to an article by Deloitte (2013) there are over 100 different players in this industry, with the top 15 being extremely consolidated. For example, in this industry, Moet Hennessy-‐Louis Vuitton (LVMH) achieved to manage $21,761 (million) in sales in 2013 and ranked 15 is Prada who attained $4,776 (million) sales revenue. With reference from the case, Chanel has mastered it strategy and puts strains on all competitors by increasing brand quality, customer experience and social status. This shows clear evidence this industry is extremely profitable. Bargaining Power of Buyers-‐ ‘Medium’ With this sort of industry where price isn’t the main concern, it gives a clear indication that customers have a preference and loyalty to specific brands. Referring back to Cebreros (2012) she claims customers form an emotional attachment to brands. However, referring to the case, customers demand unique designs and a brand image based on rich heritage. Therefore, with limited brands to choose from, this why brand loyalty occurs.

__ Now the macro environment has been analysed, opportunities and threats of Louis Vuitton from a traditional SWOT can be identified. These include,

Opportunities Threats § Strong growth in the Asia-‐

Pacific region § Tourism § Experienced workforce

§ Counterfeiting § Increase in environmental

awareness § Substitute products

8

Part II: Internal Analysis

Value Chain (Fig.3) according to the case Activity Relating to LV Inbound Logistics • Raw materials (leather)

• Only purchase zips clasps from external suppliers Operations • Production done in house

• Zips and leather vigorously tested • Goods hand crafted by highly skilled people with

expertise’s but now also use machinery. Outbound Logistics • Done through their own exclusive shops

• Products do not get lost • Decreased grey market

Marketing & Sales • Heavy Advertising used to highlight: -‐ Product design -‐ Buying experience -‐ Brand image

Service • Goods sold in company owned stores • Intangible Service for elites. Includes:

-‐ Butler service -‐ Design consultants -‐ Private apartment and yachts

Infrastructure • Based on: -‐ Savoir Faire -‐ Excellent Customer Service -‐ Innovation

HR Management • New employees trained by experienced workers • Creative talent

Technology • Used for innovation / creativity • Used in manufacturing process

Procurement • Purchase leather from North Europe • Equipment not often used-‐ (hand crafted materials)

(Fig.3-‐ Value Chain)

9

The Key Links

The case highlights by controlling inbound logistics all the way to the service creates value in the value chain with less profits going out-‐house to merchants. The biggest link in the value chain is ‘inbound logistics’ and ‘operations’. The key in operation is to make superior quality products. By controlling their logistics, they know the raw materials they bring in for manufacturing will meet the quality expectations. The making of unique products will result in less defaulted products therefore decreasing costs.

Competencies Framework

Threshold Resources -‐ By vertical integration means Louis Vuitton’s company owned stores create exclusively and value. -‐ Highly trained and significantly specialised staff is required for the crafting of handmade leather goods. -‐ The vertical integration means Louis Vuitton can control quality and image of their expanding number of factories.

Threshold Competences

-‐ Regards to distribution, their tight control means stock is more easily managed therefore, increasing the speed of distribution. -‐ To improve customer value, experienced sales persons are with customers at all time to improve the quality of customer service. -‐ With less specialized employees, this allows Louis Vuitton to improve flexibility and speed of response by shifting employees to manufacture different products in response to a change in demand.

Distinctive Resources -‐ Operating for over 160 years means they have created unique heritage and evidence of beautiful specimen of French engineering. -‐ The wide range of experienced workers at Louis Vuitton makes it easier to train new employees to become exceptional and talented individuals. -‐ Creative workforce to display savoir faire and innovative products to gain competitive advantage

Distinctive Competences

-‐ Distinctive methods to deliver excellent customer service to their elite target markets. Essential for the service they provide. -‐The brand image of Louis Vuitton means effective sales promotions can be executed, by the use of elegant fashion models. -‐ Operational efficiency means new production systems such as lean production reduce employee specialization and training.

10

VRIO Framework

_ Valuable? Rare? Difficult to

Imitate?

Exploitable by Organisation?

Competitive Implications

R1-‐ Company owned stores

YES NO NO YES Competitive parity

R2-‐ Superior craftsmanship

YES YES YES YES Sustainable competitive advantage

R3-‐ Utilisation of factories


R4-‐ Unique heritage and tradition (brand)


R5-‐ Experienced workforce

YES YES NO YES Temporary competitive advantage

R6-‐ Savoir faire & innovation


-‐ -‐ -‐ -‐ -‐ -‐ C1-‐ Speed of distribution

through vertical integration


C2-‐ Quality customer service


C3-‐ Quick adaption to demand changes


C4-‐ Excellent Customer Service


C5-‐ Effective marketing using elegant models


C6-‐ Effective production system


11

From the ‘VRIO Framework’ model, one of the biggest resources that are contributing to the success of Louis Vuitton is the unique heritage and French tradition of the brand image. (Hall 1993) states intangible resources such as ‘brand image’ can influence customer’s decision-‐making process enabling Louis Vuitton to charge premium prices. The difficulty in creating an intangible brand image is it takes a long period of time in this industry, therefore creates sustainable competitive advantage. Furthermore, a competency that Louis Vuitton has mastered to create sustainable competitive advantage is, the ability to quickly adapt to customer demands. In this sort of industry, Bhardwaj & Fairhurst (2009) claims there is a constant need to refresh product ranges. Referring to the case, the new production system meant workers were now less specialised meaning they were more skilled when producing products. Responding so quickly to customer demand is extremely difficult and wouldn’t be possible without the vertical integration model, concluding being one of the first to meet new customer needs creates a sustainable competitive advantage.

Ratio Analysis based on the financial report in the case study, for current ratio analysis of Louis Vuitton; please refer to (Appendix 2-‐ Fig.1)

* Cost of Sales calculated = (Total Revenue – Gross Profit

Strengths Weaknesses § Vertical integration § Savoir faire and innovation § Distinctive brand image § Meet demand quickly

§ Limited customer base § Mostly female demographic § Intense competition

12

From the financial documents specified in the case, ratio analysis is used to evaluate aspects of a company’s performance. Profitability: In terms of profitability, the reason for a 52.8% gap between gross and net profit is due to the amount Louis Vuitton spend on intangible service to create customer service. Furthermore, as the case states they destroy old stock instead of discounting shows their business philosophy isn’t utilising business resources. Liquidity: The liquidity of Louis Vuitton is excellent. With a current ratio of 1.38 and $13,267,000 in current assets gives a good indication that Louis Vuitton can sell assets to solve short-‐term debt. As mentioned Louis Vuitton’s profitability is good with huge profit margins. With easy assess to cash-‐in-‐bank reduces any business risk significantly. Activity: Activity is one of Louis Vuitton’s worst performance areas, but there is a reason for this. According to Accounting for Management (2016) activity evaluates how frequent assets are turned into cash. In 2011 a 0.50 asset turnover is due to products being hand crafted by artisans to meet customers needs. It is hard to maintain high quality and make assets quickly. Solvency: In terms of solvency, a debt/ equity ratio of 30% shows how little Louis Vuitton depend on creditors for money to help continue the business. A 30% margin is extremely low and shows great promise that they have the resources and business structure to thrive and continue operating successfully.

13

Part III: Company’s Corporate & Business Strategy 3.1-‐ Corporate Strategy Vertical Scope Looking at the internal activities, Louis Vuitton (2013) highlight their business model of controlling their value chain has anchored their vision on building on their idiosyncratic heritage. As stated in the case, controlling their factories all the way to distribution increases quality and image. This shows they have a wide vertical scope. Geographic Scope Louis Vuitton (2013) proudly states they operate in over 65 countries, with over 460 stores. The purpose of their international strategy is only selling their products and services in prime venues in major cities to maintain brand exclusivity when making reference to the case. Horizontal Scope When making reference to the Ansoff Matrix, (Appendix 1-‐Fig. 2) ‘product development’ has been a successful strategy. The case highlights a range of products offered that include, leather goods, shoes, jewelry and their website even offers luxury notepads. Louis Vuitton (2015). With a wide product portfolio offering services to both genders highlights evidence of a diversification strategy in use. 3.2-‐ Business Strategy When relating to Porter’s generic strategy, (refer to appendix 1 – fig. 1) there is strong evidence from the case that Louis Vuitton operate a ‘focused differentiation’ strategy. According to Johnson et al. (2012) this strategy targets a narrow segment tailoring products or services to specific customers. They state competitive advantage can be achieved because they do not serve a broad range of segments. This means co-‐ordination, compromise and flexibility are easily achieved. Evidence from the case shows the target market Louis Vuitton are targeting customers with extreme amounts of disposable income. But the uniqueness is more based on the service rather than the product. For example, they offer amenities such as design consultants, butler service and shopping in privacy on yachts.

14

Relating Louis Vuitton’s business strategy to the strategy clock, (appendix 1-‐ fig.2) the focused differentiation strategy shows the true success of the company because it shows high perceived value to the consumers which is why the price is so high.

15

Part IV: Key Issues and Challenges Reviewing the internal and external analysis, it is essential to pinpoint the success of Louis Vuitton is mainly down to controlling their entire value chain by methods of vertical integration. By keeping all profits in house is why their profitability ratios are healthily and sustainable. But this success has meant the pressure to grow further threatens the balance of the values and heritage of Louis Vuitton. It is important they do not rely too much on automated manufacturing to satisfy this growth. In order for Louis Vuitton to remain competitive, there needs to be a clearer focus on customer segments. Involving the ‘absolute segment’ they need to ensure exclusivity by tailoring hand-‐made products to their needs. The use of machinery is an excellent way to grow but heavy reliance isn’t a successful sustainable way of growing without undermining the values. A summary of the external analysis shows an increase in environmental concerns is Louis Vuitton’s biggest threat. There is evidence that Louis Vuitton has managed to control aspects of the macro-‐environment such as adapting prices in various countries to deal with import duties and their ability to exploit technological advances by selling to the ‘accessible segment’ through E-‐Commerce. But operating with quality leather goods, it’s unmanageable not to release harmful chemicals while treating the leather so it doesn’t rot. In order to gain competitive advantage, Louis Vuitton could partner up with charitable organisation such as UNICEF as this is an excellent method to build a moral reputation against the harm they are already inflicting on the environment. With this evidence, it is clear that Louis Vuitton and the luxury goods industry is beginning to stagnate and has hit maturity on the product life cycle. (Fig.4) Although the industry is still growing, the competition has become fiercer than ever before.

(Fig.4) –Product Life Cycle

16

Part V: Strategic Options for Growth To create appropriate strategic growth strategies, a TOWS Matrix has been created to help find gaps in how Louis Vuitton can improve.

TOWS

Opportunities 1) Strong growth in Asia-‐ Pacific region 2) Tourism 3) Experienced workforce

Threats 1) Counterfeiting 2) Increase in environmental awareness 3) Substitute products

Strengths 1) Meet demand quickly 2) Distinctive brand image 3) Savoir faire & innovation

SO -‐ Using innovation and savior faire to extend Louis Vuitton’s product portfolio due to their experienced workforce. -‐ Their ability to meet demand quickly will be able to cope with the increase growth in the Asia-‐Pacific.

ST -‐ Louis Vuitton’s distinctive brand image will be enough to draw customers away from substitute products. -‐ The savior faire and innovative product design and materials will make it difficult to copy therefore, reducing counterfeiting.

Weaknesses 1) Limited customer base 2) Mostly female demographic 3) Intense competition

WO -‐ With an experienced workforce that makes unique products, they can make a wider product portfolio that will appeal to more males. -‐ With many customers being from around the world, creating products to suit their cultures will help eliminate competition.

WT -‐ With the increase of environmental awareness, it is essential to use better raw materials to create a competitive advantage. -‐ With the threat of substitutes and limited customer base, it is imperative for Louis Vuitton to maintain an innovative and create design portfolio.

17

5.1 Option One: The first option for growth that Louis Vuitton can clearly exploit is, diversifying their product range/portfolio where there are gaps in the ‘personal luxury industry’ such as going into the perfume. According to the case in 2012 this industry is estimated to reach $19,950,000,000. The reason why this was chosen; the case highlights The LVMH Group has had experience in this field, and their brand image is likely to attract all three customer segments. When relating this to the ‘Ansoff Matrix’ (Fig.5), operating this growth strategy would mean ‘product development’ has been initiated. As the case highlights perfume is classed as a luxury good and Louis Vuitton expanding their product range has huge potential.

Option Two: The second growth strategy is to maintain Louis Vuitton’s values by growing through acquisitions and organically. Through taking over smaller businesses in the luxury goods industry is an excellent way to retain the business heritage and values of the business. The reasoning for this growth strategy is to retain the business philosophy, by not forcing growth by using additional equipment and machinery protects their brand image.

(Fig.5) – Ansoff Matrix

18

Option Three: The third option is to have more stores in Asia-‐Pacific and America regions. With reference to the case estimated growth in 2012 is 18% for Asia-‐Pacific, and 13% for America. Although the growth is higher in Asia-‐Pacific, more American stores will be introduced to take into consider the external factors such as price fluctuations and tourism. 5.2

SFA Framework Model

The main purpose of all three growth strategies was to find methods of not damaging or diluting Louis Vuitton’s brand image. According to the SFA Framework, option one was considered the best in terms of suitability regarding the brand image, company values and profitability. As mentioned previously in the report, the luxury goods industry is at a stagnation point. Acquisitions and new stores will create more customers, but the methods of product development may develop to be an excellent way to bring in new customers. This would prove to be successful due to the luxurious brand image Louis Vuitton possesses.

Criteria Option One: Expand the product portfolio to the perfume industry

Option Two: Continue growing organically through

acquisitions

Option Three: Open more stores in Asia-‐Pacific Regions

-‐ (1-‐5) (1-‐5) (1-‐5) Suitability 14/15 12/15 10/15 Exploits brand image 5 4 3 Retains company values 4 5 4 Enhances profitability 5 3 3 Feasibility 8/10 10/10 5/10 Achievable in 12 months 4 5 2 Use of existing skill set 4 5 3 Acceptability 13/15 10/15 11/15 Positive stakeholder reaction

5 4 4

Increase market share 4 4 5 Expand customer base 4 2 2 Total:

35/40 32/40 26/40

19

In terms of feasibility of these three options, it is obvious option two obtained the best score due to the previous success of acquisitions in the past. The option to build new stores was just not feasible in a 12-‐month period, but creating a new perfume range is. Reference to the case states Louis Vuitton has ‘significant experience’ in this field so they will know how to market and distribute a perfume product under their brand name. Finally, in terms of acceptability, option one again highlights positive results. The most important aspect of acceptability is keeping stakeholders satisfied. Earlier introduced, the customers are the most important stakeholder in this industry. Its key to note customers that are loyal to brands will be extremely excited to find Louis Vuitton has launched a new range of products which is why market share and customer base are expected to grow better than the other two options.

To ensure Option one is the best strategy, Barnett & Wilstead’s 5-‐point model will be used. (Information required from the case)

Barnett & Wilstead 5 Point Model

Option 1: Expand the product portfolio to the perfume industry.

Reasoning

Competitive response analysis The case shows firms such as Hermes and Gucci have already released fragrances. But due to customer loyalty and Louis Vuitton’s market leadership means a competitive war will not be created.

Risk An industry worth $19 billion and the experience Louis Vuitton has in this field means the risk is low.

Synergy With Louis Vuitton’s product portfolio being based on savior faire and innovation, creating an elegant fragrance range will partner well with the existing range.

Consistency With ‘product development’ there will be no radical change to the existing strategy. It involves staying in the luxury industry, but targeting new markets.

Workability Through financial resources, Louis Vuitton has the assets and capital to fund this project. Furthermore with expertise in this field shows the importance of human resources.

20

5.3

4 Key Resources to Implement Option One: In order to expand Louis Vuitton’s existing product portfolio, a range of resources and competencies are required. Human:

• Experienced staff that understands what customers require. • With expanding product range, new suppliers will need to be sourced.

Financial:

• Cash in bank for marketing and development. • Cash is needed for the purchase of new equipment and raw materials.

Physical:

• Machinery and equipment will be essential to create fragrances. • Distribute and sell through the same method of company owned

stores.

Intangible:

• Maintain brand image of ‘savoir faire and innovative’ • Distinguishing scent / ‘brand secret’ to display elegance.

A distinctive competency that is required is brand management and product design capabilities. The purpose of the growth strategy is to maintain the business philosophy of savior faire and innovation and this must be displayed through the packaging, the design of fragrance bottle and target market.

21

Part: VI: Recommendations & Conclusion From the case, it is evidential the heritage and traditions of Louis Vuitton are a key reason for their success. With over 160 years of heritage, this reputation can be easily ruined if Louis Vuitton is to heavy reliant on machinery. As mentioned in the ‘VRIO Framework’ the current methods how Louis Vuitton create sustainable competitive advantage is by:

• Superior craftsmanship • Savior faire and innovation • Quick distribution by vertical integration • Quick adaption to demand changes.

From these results, it is clear Louis Vuitton has their biggest resources in human and intangible methods so to maintain competitive advantage; these are the resources that need to be exploited. This is why an excellent growth opportunity is through product development on the ‘Ansoff Matrix’ because through acquisitions, Louis Vuitton have obtained the necessary workforce to make this a feasible growth strategy. With regards to the ongoing health of Louis Vuitton, the ratio analysis proves the company is financially sound and the only purpose for growth is to maintain a market leadership strategy.

(Fig.6) – Extent of Change

22

In terms of expanding the product range, when relating to Bulogun & Hailey (2008) this strategic change of expanding to fragrances would be categorised as an ‘adaptation’ change on the ‘extent of change model.’ (Fig.6) This is because Louis Vuitton would be keeping their savior faire and innovative culture while making small changes to grow the business. By making small changes means Louis Vuitton still keep control of their vertical integration which is a key factor in their value chain. With reference to the case, the only issue Louis Vuitton face with this strategic recommendation is their competition such as Gucci and Hermes already has experience and knowledge in this chosen field. However, by eliminating the growth prospect of using additional machinery means Louis Vuitton’s distinctive brand image and market leadership should be able to sustain this strategy to be successful.

23

References

Accounting for Management (2016) ‘Financial Ratios’ Available at: http://www.accountingformanagement.org/ [Accessed 04/01/2016] Anti-‐Counterfeiting Group (2012) ‘Impact of Counterfeits to UK Luxury Market’ Available at: http://www.havocscope.com/tag/fake-‐handbags/ [Accessed 22/12/2015] Blythe, J (2012) ‘Essentials of Marketing’. 5th edn. United Kingdom: Financial Times Prentice Hall Balogun, J & Hailey, H (2008) ‘Exploring Strategic Change’ 3rd edn Pearson Education Bhardwaj, V & Fairhurst, A (2009) ‘response to changes in the fashion industry’ The International Review of Retail, Distribution and Consumer Research Vol. 20 Cebreros, V (2012) Luxury Leather Goods ‘industry competitive analysis’ IUM International-‐ University of Monaco Chilkoti, A & Hidayat (2015) ‘Indonesia scraps luxury taxes in bid to boost flagging growth’ Available at: http://www.ft.com/cms/s/0/88970d74-‐1026-‐11e5-‐bd70-‐00144feabdc0.html#axzz3voEuMqVM Financial Times Article [Accessed 28/12/2015] Deloitte. (2015) ‘Global Powers of Luxury Goods 2015’-‐ Engaging the Future luxury consumer.’ [Deloitte Touche Tohmatsu Limited.] UK Farfan, B (2015) ‘Louis Vuitton Mission Statement-‐ Luxury, Elegance, Creativity & Art de vivre’. Available at: http://retailindustry.about.com/od/retailbestpractices/ig/Company-‐Mission-‐Statements/Louis-‐Vuitton-‐Mission-‐Statement.htm [Accessed 22/12/2015] Hall, R (1993) ‘A Framework Linking Intangible Resources and Capabilities to Sustainable Competitive Advantage’ [Strategic Management Journal] Volume 14: Issue 8 Johnson, G, Whittington, R Scholes, K (2011) ‘Fundamentals of Strategy’ 2nd edn. United Kingdom: Financial Times Prentice Hall Kinge, P, Landage M & Wasif I (2013) ‘Non-‐Woven for Artificial Leather’-‐ International Journal of Advanced Research in Engireering and Applied Sciences. D.K.T.E. Society’s, Textile & Engineering Institute, Ichalkaranji, India

24

Louis Vuitton (2014) ‘The LVMH Model’-‐ An operational and functional model Available at: http://www.lvmh.com/group/about-‐lvmh/the-‐lvmh-‐model/ [Accessed 04/01/2016] Louis Vuitton (2014) ‘HR Values’ Available at: http://eu.louisvuitton.com/eng-‐e1/careers/homepage#/culture [Accessed 12/01/2016] Mahbubani, M (2013) ‘Louis Vuitton’ Richard Ivey School of Business – The University of Western Ontario pg. 1-‐19 PETA (2015) ‘Environmental Hazards of Leather’-‐ The Leather Industry. Available at: http://www.peta.org/issues/animals-‐used-‐for-‐clothing/leather-‐industry/leather-‐environmental-‐hazards/ [Accessed 03/01/2016]

25

Appendix 1:

(Fig.1) –Porter’s Generic Strategy

(Fig.2) –Bowman’s Strategy Clock

Documents

Full Strategic Appraisal of Louis Vuitton