Lv Value Chain

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Internal Analysis Value Chain Value Chain is set of activities that a company does in order to deliver the product or service for the market. It was firstly conceived my Michael Porter in 1979. It can be divided into the Primary and Support activities. Main attribute of value chain for fashion brands like LV is the design of the products. Every single designer has their own style of work. But usually steps are as follows: designer makes a sketch, gets a more detailed working pattern and finally chooses from the available materials for the cloth (Chuong, 2013). The designed clothes then go to the fashion shows, where first impressions are made. Most positively reviewed clothes then go to the stores. In the case of LV, it has got its exclusive…show more content…
It offers 3 main strategies for companies to pursue: Differentiation, Cost Leadership and Focus, it suggests that if the company tries to follow all 3 at once it won’t succeed. Luxury brand customers demand differentiated products, they want to feel unique and be distinguishable from others, which is why pretty much every single luxury fashion brand has to follow the differentiation strategy. LV does it by having unique designers and suppliers that offer the highest quality products possible. Since luxury customers are prepared to pay premium, cost leadership strategy would be unwise and could lead to major revenue loss. LV gained its market share at the start by focusing on geometrically stackable mallets. Now that it is a global brand, it does not seem to be focusing on any particular niche product, rather it has differentiated into several markets and the main goal seems to be the continual of the trend. Issues and Challenges Facing the…show more content…
If LV products can be successfully counterfeited with enough quality, then its brand name will vanish. Identification and Evaluation of the main Strategic Options for Growth TOWS Matrix TOWS Matrix is often credited to Albert Humphrey. It stands for Threats, Opportunities, Weaknesses and Strengths. It aims to identify possible strategic options that a firm has for the future (Morrison, 2012). Here is the TOWS Matrix for LV. From the matrix we can identify the emerging markets as the main strategic option. So far, there does not seem to be any political or military confrontation in South-East Asia, a region that has over 300 million people. It could easily become the driving force behind LV growth. Another such area could be South America, another emerging market with masses of population and quite high stability level. Another interesting strategic option for growth could be to acquire as many businesses as possible in the existing markets. Perhaps, even aggressive takeovers could be viable. Competition for talent will only get more intense, which means that LV has to take chances in order maintain or even grow its market

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