LMVH in 2016: Its Diversification into Luxury Goods
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.
– 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.
– 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?
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?