Report. The task for the second assignment includes a strategic analysis of a given company. Specifically, students are required to identify factors influencing the company strategy and evaluate the main….
Its Diversification into Luxury Goods, by John E. Gamble – The use of joint ventures for diversification has advantages in three situations. Discuss each of these situations and the relevance of each strategy to LVMH business and portfolio growth
textbook case: Case 22: LMVH in 2016: Its Diversification into Luxury Goods, by John E. Gamble (page C-290) Read the case and then respond to the case questions given below. In addition to using the case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company’s website, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Be sure to cite all sources according to APA guidelines (see also Appendix: A Note about Documentation). about Documentation). Please limit your analysis to four pages, double-spaced. Note: For assistance with analyzing the financial data in this case, Table 4-1 on pages 83 to 86 of your textbook is a useful reference.
1. The use of joint ventures for diversification has advantages in three situations. Discuss each of these situations and the relevance of each strategy to LVMH business and portfolio growth.
2. Developing a diversity strategy, a business must execute and apply a three-step process. Describe each of the steps, and select the step that you deem the most important consideration for LVMH. Detail the rationale for your selection.
3. The business strategy adopted by Bernard Arnault centered on the sale of luxury products and services utilizing retail channels. Did the use of retail channels enhance or detract from the diversity of LVMH products and services? Be detailed and expansive in your response.
4. LVMH largely sought to diversify by acquisition of related businesses in the luxury brand market. Describe the concept of “strategic fit” as it applies to LVMH. Did LVMH effectively leverage a strategic alignment with acquisition tar gets?