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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, geopolitical disruptions, 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 -
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.
Low bargaining power of suppliers
– Suppliers of Lvmh Career in the sector have low bargaining power. LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lvmh Career to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Lvmh Career digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lvmh Career has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
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.
Ability to lead change in Strategy & Execution field
– Lvmh Career is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Lvmh Career in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Lvmh Career has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Lvmh Career is present in almost all the verticals within the industry. This has provided firm in LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
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.
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.
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.
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 -
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 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.
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.
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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lvmh Career is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Lvmh Career has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Low market penetration in new markets
– Outside its home market of Lvmh Career, firm in the HBR case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lvmh Career in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Manufacturing automation
– Lvmh Career can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Lvmh Career to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Lvmh Career can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Creating value in data economy
– The success of analytics program of Lvmh Career has opened avenues for new revenue streams for the organization in the industry. This can help Lvmh Career to build a more holistic ecosystem as suggested in the LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination case study. Lvmh Career can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lvmh Career can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Lvmh Career can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Lvmh Career can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lvmh Career can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study LVMH MoA?t Hennessy - Louis Vuitton: A Personal Career Destination .
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.
Technology acceleration in Forth Industrial Revolution
– Lvmh Career has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Lvmh Career needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Lvmh Career in the Strategy & Execution sector and impact the bottomline of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Lvmh Career business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
