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?