Team 19– BIEM 16 A.Y. 2015/2016 

Milan Salevic Alice Schenato Igor Schetselaar Nicola Sita Sophie Marianna Smereczynski Silvia Solitario  

N°1World Luxury Leader

70

Houses

120,000Employees

€30.6 BillionRevenues in 2014

3,700Stores

WINES& SPIRITS

Belvedere Dom Pérignon

HennessyKrug

Moët & Chandon

Six business groupsto represent the Western ‘Art de Vivre’

FASHION& LEATHER GOODS

Louis VuittonFendi

Donna KaranMarc Jacobs

GivenchyPucci

PERFUME& COSMETICS

Christian DiorGuerlainGivenchy

KenzoAcqua di Parma

Make Up For Ever

WATCHES& JEWELRY

TAG HeuerHublotZenithBvlgari

De Beers

SELECTIVERETAILING

DFSStarboard Cruise

Services

SephoraLe Bon Marché

Rive Gauche

OTHER ACTIVITIES

Les EchosRoyal Van LentCheval Blanc

History

Bernard ArnaultChairman and CEO

$4 billion deal

1854

1885

1888

1896

1987

1989 90’s 200

0200

1200

8201

5

1743

1971

261 boutiques15 global storesIPO

Economic crisis

Changes Name

Institutional Structure

Shareholders

Employees

Suppliers

Banks

Customers

Government

Governance Structure

Bernard Arnault#66 Forbes’

“World’s Most Powerful People”

Board of Directors

Executive Committee

Organizational Structure

Groupe Arnault

LVMHFashion & Leather GoodsR&D, Marketing, Finance etc.

Wines & Spirits

R&D, Marketing, Finance etc.

Perfumes & Cosmetics

R&D, Marketing, Finance etc.

Watches & Jewelry

R&D, Marketing, Finance etc.

Selective Retailing

R&D, Marketing, Finance etc.

Other Activities

R&D, Marketing, Finance etc.

Christian Dior SA

Christian Dior Couture

Corporate Social Responsibility

Financed by contributions from each

Maison, calculated using gas emissions (15€/t of

CO2)

LIFE - LVMH Initiatives For the Environment

“The most beautiful materials used in viticulture and oenology , the creation of perfumes and cosmetics, fashion and leather goods and jewelry which are the heart of our business, are all provided by nature.

Today respect for the environment is not only an imperative, it is also a lever that drives progress”Bernard Arnault

Quality of life in the Workplace

Respect for the Individual and Diversity

Support local area development

Environmental performance

The LVMH Spirit

Innovation & Creativity

Excellence of products and service

Brand image

enhancement

Entrepreneurship

Leadership - Be the best

Financial performance

Cross Industry ComparisonCompany Name Operating Revenue Net income Total Assets ROEChristian Dior SE 42.317.926 1 1.946.264 3 83.533.651 1 4, 70% 11

LVMH SE 37.204.899 2 6.857.240

1 64.786.836 2 24,55

%4

Industria De Diseño Textil SA

20.480.750 3 2.826.8712

17.383.705 3 23,89%

5

V. F. Corporation 12.282.161 4 1.047.5054

9.980.140 5 18,60%

7

Brightoil Petroleum Ltd

10.903.221 5 74.79710

3.157.642 9 7,68% 9

PVH Corporation 8.241.200 6 439.0008

10.931.800 4 10,06%

8

Zhejiang Material Industrial

6.161.465 7 58.74911

4.954.963 7 4,93% 10

Hermes International SA

5.004.280 8 1.042.6705

5.789.074 6 24,83%

3

Michael Kors Holdings Ltd

4.371.469 9 881.0236

2.691.893 10 39,31%

2

Burberry Group PLC 3.734.334 10 497.7247

3.216.334 8 23,17%

6

Hugo Boss AG 3.122.201 11 404.6149

2.017.592 11 39,49%

1

LVMH Stock Price

Corporate Strategy

“If you want to seduce a beautiful woman, you don’t start by raping her from behind”.

Patrick Thomas, CEO of Hermés

Diversification

Vertical Integrati

on

5-forces modelLuxury industry

Rivalry

(moderate)

Suppliers

(moderate)

Substitutes

(moderate to high)

Buyers

(low)

New entrant

s(low)

Industry RivalryOligopolyEconomies of scaleDifferentiation

Threat of new entrantsUnrecoverable expensesAccess to unique factorsPatents Learning curves

Bargaining power of suppliersHighly specialised “atelier d’art”High switching costs

Threat of substitutesMiddle-price brandsKnock-offsInternet accessibility

Competitive Advantage

Human Capabiliti

es

Intangible

Resources

Tangible Resource

s

Started from the bottom

now we here.

Organizational CultureThank you for your attention!