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LVMH Moet Hennessy Louis Vuitton (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

LVMH Moet Hennessy Louis Vuitton

LVMH Moet Hennessy Louis Vuitton (LVMH) produces and retails luxury goods under various categories and brands. LVMH is headquartered in Paris, France and employs approximately 77,087 people of which 12,161 are part-time.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand positioning
  • Wide geographical presence
  • Broad product portfolio

Weaknesses

  • Declining margins despite cost-cutting measures

External

Opportunities

  • Large market for luxury goods and positive trends in emerging markets
  • Growth through inorganic means
  • Celebrity brand endorsements

Threats

  • Slowdown of wines and spirits and watch making businesses
  • Increased market for counterfeit products
  • Intense competition
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