LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination
This case explores the career development of professionals with strong leadership potential within an international business group - LVMH. It follows the career progression of an MBA graduate, her exposure to networks and mentors, and her international mobility.
Authors :: Frederic Godart, Nancy Leung, Brian Henry, Andrew Shipilov
Swot Analysis of "LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination" written by Frederic Godart, Nancy Leung, Brian Henry, Andrew Shipilov includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lvmh Career facing as an external strategic factors. Some of the topics covered in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination case study are - Strategic Management Strategies, International business, Leadership, Networking and Strategy & Execution.
Some of the macro environment factors that can be used to understand the LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, etc
Introduction to SWOT Analysis of LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lvmh Career, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lvmh Career operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination can be done for the following purposes –
1. Strategic planning using facts provided in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination case study
2. Improving business portfolio management of Lvmh Career
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lvmh Career
Strengths LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lvmh Career in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination Harvard Business Review case study are -
Learning organization
- Lvmh Career is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Lvmh Career is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Lvmh Career has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lvmh Career to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Lvmh Career is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Frederic Godart, Nancy Leung, Brian Henry, Andrew Shipilov can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Lvmh Career
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Lvmh Career does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Lvmh Career is one of the most innovative firm in sector. Manager in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Lvmh Career in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Lvmh Career is one of the leading recruiters in the industry. Managers in the LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Lvmh Career has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Lvmh Career has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lvmh Career has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Lvmh Career is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Lvmh Career has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination are -
Lack of clear differentiation of Lvmh Career products
– To increase the profitability and margins on the products, Lvmh Career needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Lvmh Career has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Lvmh Career has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners
– Because of the regulatory requirements, Frederic Godart, Nancy Leung, Brian Henry, Andrew Shipilov suggests that, Lvmh Career is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Aligning sales with marketing
– It come across in the case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination can leverage the sales team experience to cultivate customer relationships as Lvmh Career is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination, it seems that the employees of Lvmh Career don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Products dominated business model
– Even though Lvmh Career has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Lvmh Career has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Lvmh Career even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Lvmh Career supply chain. Even after few cautionary changes mentioned in the HBR case study - LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lvmh Career vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Lvmh Career needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Lvmh Career is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Lvmh Career needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lvmh Career to focus more on services rather than just following the product oriented approach.
Opportunities LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination are -
Better consumer reach
– The expansion of the 5G network will help Lvmh Career to increase its market reach. Lvmh Career will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for Lvmh Career to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Lvmh Career can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Lvmh Career has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lvmh Career to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Lvmh Career in the consumer business. Now Lvmh Career can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Lvmh Career can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Lvmh Career can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lvmh Career can use these opportunities to build new business models that can help the communities that Lvmh Career operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lvmh Career is facing challenges because of the dominance of functional experts in the organization. LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Lvmh Career has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lvmh Career to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Lvmh Career to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Lvmh Career can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Buying journey improvements
– Lvmh Career can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Lvmh Career can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Threats LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Lvmh Career.
Environmental challenges
– Lvmh Career needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Lvmh Career can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Lvmh Career needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Lvmh Career needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Lvmh Career high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Lvmh Career
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Lvmh Career.
Stagnating economy with rate increase
– Lvmh Career can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Lvmh Career demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lvmh Career with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lvmh Career in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Lvmh Career will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Lvmh Career is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Lvmh Career needs to make to build a sustainable competitive advantage.