Moet Hennessy Louis Vuitton: Case Study (LVMH)

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1 Introduction LVMH differentiates itself from the competitors for many a reasons. The prominent of them include leadership, well recognized brand, and a prioritizing on tradition of innovation. These are goals that have been designed by CEO and Chairman Bernard Arnault. The brands show resilience to the economic recession, as sales and profit have not been affected much. In 2011, the brand 's value was Euro 18.4 billion and had increased by 23 percent from 2010. 3 CASE SUMMARY AND PROBLEM STATEMENT Moet Hennessy Louis Vuitton (LVMH) was profitable in 2010 and 2011. This growth can be attributed to its flagship group, Louis Vuitton. In 2011, LVMH announced replacement of its CEO Yves Carcelle at the end of 2012 by Jordi Constants. However, after a month, Constant was replaced in 2012 by Michael Burke, an LVMH insider who had been with the company for more than 30 years. While LV had shown profitable growth in the past few years the question was whether such a growth rate was sustainable in the long run. In developing nations, sector 's expansion has crossed double digits. However, as luxury products continue to puncture global markets, the prestige of brands like Louis Vuitton has not come to declined at all. This seems quite odd as the concept of luxury is tied to rarity and exclusivity. This has put a question mark on the sustainability in the growth of Louis Vuitton, for how long it will be maintained. But it is to be noted that the growth in revenue due to more

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