1. Adrian, Aman, Martina & Sandra. Group 2

2. OUTLINE – LOUIS VUITTON
Value Chain
Strengths
Weaknesses
Long term strengths
Long term weaknesses
Strategic capabilities
Sustainable competitives advantages
Business Law
Sandra

3. VALUE CHAIN – SUPPORT ACTIVITIES
FIRM INFRASTRUCTURE
General Management
Chairman Bernard Arnault
Product categories independently manage
Martina

4. VALUE CHAIN – SUPPORT ACTIVITIES
PROCUREMENT
Suppliers
High quality raw materials selection
Fashion magazines- Vogue, Vanity Fair
Martina

5. 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

6. 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

7. VALUE CHAIN – PRIMARY ACTIVITIES
INBOUND LOGISTICS
Selective about materials
Quality live up to expectations
Sandra

8. 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

9. 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

10. 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

11. VALUE CHAIN – PRIMARY ACTIVITIES
MARKETING AND SALES
Changed focus on website
Brand perception: luxury and exclusivity
Result: more profit

12. VALUE CHAIN – PRIMARY ACTIVITIES
SERVICE
Personalize your own bag
Assistent
Aftersale service: Repair of bags
Lifetime quarantee
Sandra

13. 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

14. WEAKNESSES
IMAGE: Change of image
Result: increasing profit
Adrián

15. STRENGHTS LONG TERM
Established already in Chinese Market
Sandra

16. WEAKNESSES LONG TERM IMAGE: Change of image Result: increasing profit
Aman

17. SUSTAINABLE COMPETITIVE ADVANTAGE
Brand
Quality
Innovation and savoir-faire
Adrián

18. BUSINESS LAW – PART 1 Employee in working hours: Strict liability
Employee outside the working hours: Degree of culpa –simple neglience
Dog: Owner responsible
Sadnra

19. 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

20. BUSINESS LAW – PART 3 Grounds of invalidity
Cancellation of an agreement
Strong invalidating factors
Potentially invalidating factors (bad faith)
Aman