Recommendations of Lvmh: Managing The Multi-Brand Conglomerate Case Solution

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Recommendations of Lvmh: Managing The Multi-Brand Conglomerate Case Study Help

On the basis of above internal and external analysis of the business along with the examination of different alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its local earnings and any wear and tear of its market position. The company might pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the local markets however as the company is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Lvmh: Managing The Multi-Brand Conglomerate Case Help Stores

The business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the company to broaden in worldwide markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Elimination of problems related to variety.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of substantial earnings from the local markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Lvmh: Managing The Multi-Brand Conglomerate Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme hazard to the market share of business. In this scenario the business might consider introducing Click and Recommendations of Lvmh: Managing The Multi-Brand Conglomerate Case Help stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand Uniqueness
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the company might consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the business. The benefits and drawbacks connected to Alternative 3 are offered listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Extension of problems connected to variety.
• Differences in cultures could led to a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.



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