(15 pages of text)
Louis Vuitton, the flagship group within Moët Hennessy Louis Vuitton (LVMH), had contributed to the stellar growth of the group in 2010 and 2011. But, there were clouds on the horizon. Was the recent growth sustainable? What steps should Louis Vuitton take to address upcoming challenges? This case takes the student through the challenges a global company faces as it tries to grow a business that is based on one of the most valued high-end brands in the world. The case reveals the fundamental strategic tension between what a firm needs to do, given the competitive environment, what it can do, given its resources and organization, and what leaders want to do, given their fundamental motivations and beliefs, which shape the way they see the issues.
- To help students understand a firm’s strategy and its interaction with its resources, its organization and its environment.
- To explore the role of leadership preferences and values in making strategic choices.
- To understand some of the complexities global firms face in managing the needs of competing environments.
Global, Large, 2011
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