Louis Vuitton Competitive Advantage

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Summary The main objective of this paper is to explore the concept of agile supply chain and to determine the link between agile supply chain and competitive advantage. The 21st century has led to increase in global competition and customer demands, with higher levels of turbulence and volatility in the mar- ket place. Businesses, economics and political environments are increasingly subjected to unex- pected shocks and discontinuities. As a result of these uncertainties, organisations today are faced with a number of challenges in the supply chain which include among others the ability to meet up with changes in demand variability, service improvements, lowering inbound costs, improving on- time delivery and shorter customer lead times. In order to survive, companies need to respond to ever-increasing levels of volatility in demand and focus their efforts upon achieving greater agility. Agility has the ability to rapidly respond to changes in market and customer demands as the bearer of competitive advantage. Therefore, companies need to…show more content…
The companies align their supply chain strategies with their competitive strategies to fall within the zone of strategic fit. Louis Vuitton have their competitive priorities as superior quality, craftsmanship and brand value. The volume of customers in this segment would be low. They demand luxury products at premium price and expect unique variety of products delivered at less lead times and a very high customer service. From the data it is evident that Louis Vuitton have developed the integrated supply chain network to manage the customer requirements by providing high response times via Air shipments, superior quality and craftsmanship by owning the 60% of manufacturing operations and if outsourced the suppliers manufacture only to them and own the retail stores entirely to ensure very high customer

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