LMVH in 2016: Its Diversification into Luxury Goods
LMVH in 2016: Its Diversification into Luxury Goods
Question 1
As detailed in the case, LVMH has achieved business success leveraging a diversification strategy.
– What strategic approach do you think was the most influential contributor to LVMH success?
Be both detailed and expansive in your response.
Question 2
– What is the relevance of shareholder value-chain activities in consideration of the acquisition of a related business diversification?
Be descriptive and expansive in your response.
Question 3
– Discuss the advantages and disadvantages of achieving diversification by acquisition of an existing business.
– How did LVMH use this business acquisition strategy in efforts to expand and diversify the company portfolio?
Question 4
While focused upon the luxury good marketplace, LVMH did not focus only on one product, but on a great number of products and services.
– In executing such perspectives did LVMH have a diversification strategy that was too broad in scope and/or potentially cumbersome?
– Why or why not?