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Adrian, Aman, Martina & Sandra. Group 2
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OUTLINE – LOUIS VUITTON
Value Chain Strengths Weaknesses Long term strengths Long term weaknesses Strategic capabilities Sustainable competitives advantages Business Law Sandra
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VALUE CHAIN – SUPPORT ACTIVITIES
FIRM INFRASTRUCTURE General Management Chairman Bernard Arnault Product categories independently manage Martina
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VALUE CHAIN – SUPPORT ACTIVITIES
PROCUREMENT Suppliers High quality raw materials selection Fashion magazines- Vogue, Vanity Fair Martina
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VALUE CHAIN – SUPPORT ACTIVITIES
HUMAN RESSOURCE MANAGEMENT Balance between mechanization and handmade Team consisting of workers Amount of employees increased Opening new stores in emerging markets Adik
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VALUE CHAIN – SUPPORT ACTIVITIES
TECHNOLOGY DEVELOPMENT Test laboratory for its goods (durability) A computer program identifying the flaws in the skins The online ordering system Adrián
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VALUE CHAIN – PRIMARY ACTIVITIES
INBOUND LOGISTICS Selective about materials Quality live up to expectations Sandra
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VALUE CHAIN – PRIMARY ACTIVITIES
OPERATIONS Design in own factories New factory system Result: Cost saving more profit Innovativeness and savoir-faire raids and anti-counterfeiting procedures Google agreement Aman
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VALUE CHAIN – PRIMARY ACTIVITIES
OUTBOUND LOGISTICS Directly DOS stores: Control distrubution and images Excess stock destroyed Outsources transportation: FedEx Different transportation services -> Saving costs Focus on core competences: Quality, handcrafted luxury leathergoods One supplier: Low transaction costs Sandra
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VALUE CHAIN – PRIMARY ACTIVITIES
MARKETING AND SALES Targeting all three consumer segments Goal: aspirational and absolute segment Asia-pacific sales increasing Aspirational consumers’ preferences Hold on to accessible consumers Going towards Chanel, Hermès and Bottega Veneta Aman
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VALUE CHAIN – PRIMARY ACTIVITIES
MARKETING AND SALES Changed focus on website Brand perception: luxury and exclusivity Result: more profit
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VALUE CHAIN – PRIMARY ACTIVITIES
SERVICE Personalize your own bag Assistent Aftersale service: Repair of bags Lifetime quarantee Sandra
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STRENGHTS Their size- more than 450 stores worldwide - expansion to China Their brand- tradition, quality craftsmanship Strong leadership Innovation and savoir-faire Their marketing The factory system and the teams High quality materials Martina
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WEAKNESSES IMAGE: Change of image Result: increasing profit Adrián
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STRENGHTS LONG TERM Established already in Chinese Market Sandra
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WEAKNESSES LONG TERM IMAGE: Change of image Result: increasing profit
Aman
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SUSTAINABLE COMPETITIVE ADVANTAGE
Brand Quality Innovation and savoir-faire Adrián
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BUSINESS LAW – PART 1 Employee in working hours: Strict liability
Employee outside the working hours: Degree of culpa –simple neglience Dog: Owner responsible Sadnra
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BUSINESS LAW – PART 2 Fixed time for acceptance – answer before the deadline to be accepted (§ 2 Danish Contracts Act) Notice to LV- offer was no longer valid The car company followed the law – it shall not suffer as it is not responsible for delays or delivery The car company is not bound by Louis Vuitton acceptance Martina
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BUSINESS LAW – PART 3 Grounds of invalidity
Cancellation of an agreement Strong invalidating factors Potentially invalidating factors (bad faith) Aman
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