Louis Vuitton Moët Hennessy Essay
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Louis Vuitton Moët Hennessy (LVMH) is a French multinational luxury goods conglomerate. Its headquarters are located in France, Paris. LVMH was formed after the merger of Louis Vuitton (fashion producer) and Moet Hennessy (cognac manufacturer) in 1987. The company controls around 60 subsidiaries which are often managed independently and each one of them manage a small number of prestigious brands. The main holding company of LVMH is Christian Dior – a luxury goods group. LVMH is the largest luxury goods producer in the world.
Comparing LVMH with Hermes, LVMH has a huge corporate power, which Hermes doesn’t have and a vast variety of many familiar luxury brands. Some of the most well known brands of LVMH:
* Acqua di Parma
* Christian Dior S.A.
* Louis Vuitton
* Moët & Chandon
* Parfums Christian Dior
The current share price of LVMH is about 140 Euros. The following chart represents the revenue of LVMH in million Euros for the first 9 months from 2011 till 2012 in each group.
The mission of LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH aims in continuing to be synonymous with both elegance and creativity. Their products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. In view of their mission, five priorities reflect the fundamental values shared by all of LVMH Group stakeholders: – Be creative and innovate
– Aim for product excellence
– Bolster the image of their brands with passionate determination
– Act as entrepreneurs
– Strive to be the best in all they do
One of the main values of LVMH that clearly relates to the core business of the company and the opportunities pursued in business development is acting as entrepreneurs. As previously mentioned, LVMH has about 60 subsidiaries which all manage some brands and most likely LVMH is aiming to obtain more partners and subsidiaries for luxury product manufacturing in the future. Other value that clearly reflects to their actions and business strategy is to strive to be the best in all they do. In this case it is more than obvious that this value is essential for them based on the fact that LVMH is the leading luxury goods manufacturing company in the world. Innovation is also a value that pursues in their business development, because by obtaining new subsidiaries and partners they create new products in the luxury goods market.
[ 1 ]. Online encyclopedia – Wikipedia. Link http://en.wikipedia.org/wiki/LVMH, Article – LVMH [ 2 ]. Online encyclopedia – Wikipedia. Link http://en.wikipedia.org/wiki/Luxury_goods, Article – Luxury brands. [ 3 ]. Official website of LVMH. Link http://www.lvmh.com/the-group/lvmh-companies-and-brands [ 4 ]. http://uk.finance.yahoo.com/q?s=MC.PA
[ 5 ]. Official website of LVMH. Link http://www.lvmh.com/investor-relations/documentation/revenue [ 6 ]. Official website of LVMH, Link http://www.lvmh.com/the-group/lvmh-group/group-mission-and-values [ 7 ]. Official website of LVMH, Link http://www.lvmh.com/the-group/lvmh-group/group-mission-and-values