LVMH †Fashion & Leather Goods Essay Example for Free

LVMH – Fashion Leather Goods Essay LVMH, known as Moà «t Hennessy †¢ Louis Vuitton, is a French conglomerate and the largest producer of luxury goods in the world. LVMH was formed in 1987 with the merger of Moet et Chandon a champagne manufacturer, Hennessy a cognac manufacturer, and Louis Vuitton a fashion house. The LVMH group is comprised over five sectors: Fashion Leather Goods, Wine Spirits, Perfumes Cosmetics, Watches Jewelry, and Selective retailing. This external analysis will focus on the fashion and leather goods sector, which accounts for 30% of the company’s total revenue. Analytical Tools To grasp a better understanding of the fashion and leather goods industry, this analysis will use the PESTEL and Michael Porter’s five forces methods to assess the external opportunities and threats. PESTEL is an effective analytical tool to determine the social and economical trends at a macro-level. Comprehending these factors can assist a company with its business strategies and vision. Porter’s five forces is a great tool when rivalry is so intense. It defines the competitive intensity and overall industry profitability. Louis Vuitton, Fendi, Loewe, Marc Jacobs, Donna Karen, Celine, Thomas Pink, and Givenchy are few popular brands that form the fashion and leather goods sector of LVMH. These brands have a total of 1,280 stores worldwide. â€Å"The development of our fashion and leather goods brands is based on three inseparable principles: leading edge expertise, constantly cultivated creativity, and a search for excellence in distribution. (www.lvmh.com).† With LVMH’s major strategic priorities to continue developing Louis Vuitton, strengthening brand image, and projecting profitable growth of the other fashion brands, it is critical to understand the external factors that may affect them. Louis Vuitton had another year of double-digit revenue growth. The Fashion and leather goods showed an increase of 7% revenue in 2012. Louis Vuitton’s brand value has steadily increased since 2004 and has eroded its competitors. (Refer to two graphs below). Currently, LVMH has 9.5% of the market share in the fashion and leather goods industry. * Luxury Goods * Louis Vuitton PESTEL Political Factor Politics does not play a large role in the fashion and leather industry. However, issues of policies and country regulations, such as customs, import VAT and consumption taxes can impact an industry. For example, country regulations such as the Lanham Act that protects the sale of counterfeit merchandise. This Act prohibits infringement activities such as false advertising and trademark copying. â€Å"Congress has passed the Sherman Antitrust Act, the Wilson Tariff Act, The Clayton Antitrust Act and the Robinson-Patman Act, along with various other regulations regarding unfair competition (IBISWorld, 2013, p. 36). â€Å" In the US, the level of regulation is light and trends are steady. Economic Factor  Economic issues of late 2008 have led to what economists refer to as a recession. Despite the recession in the past five years, the IBISWorld estimates that there will be in annual increase in revenue of 1.2% to $9.2 billion. â€Å"As the economy rebounds during the next five years, industry revenue is forecast to grow at an even faster annualized rate of 4.6% to reach $11.5 billion by the end of 2018 (IBISWorld, 2013, p. 5).† According to IBISWorld, per capita disposable income is expected to increase in 2013. An increase in income usually increases consumer’s purchasing power; this will create multiple opportunities for this industry. In 2010, the purchasing power has slowly begun to rebound and sustained industry profits, estimating margins to account for 10.7% of revenue in 2013. With an improvement in economy and unemployment rates, Generation Y (born between 1980-1995) is expected to increase their purchasing power. Sales of luxury goods rely heavily on Asian markets. According to IBISWorld, China is now the fastest growing foreign market. With the economic growth of China, the amount of disposable income is increasing which is causing an increase demand for luxury items. Nearly 25% of Louis Vuitton sales come from Asia. Sociocultural Factor LVMH has a wide range of consumers from different backgrounds. It is imperative that they are aware of religion, race, culture, and buying habits in every country. For instance, worldwide people are more dependent on the Internet, signifying that the methods of how people purchase goods are changing. With high rates of travel within US and abroad, there is a greater demand for luggage and leather accessories. Technological Factor Technological advances in machinery and management software can assist in forecasting demand, managing inventory, and speed up production. There are many tools that industry participant’s use: * Management information systems (MIS) and electronic data processing (EDP) * Consist of full range of retail, financial, and merchandising systems * PC-based point-of-sale (POS) * Equipped with barcode readers * Electronic barcode scanning systems Ecological Factor With an increase awareness of animal cruelty and environmental issues, the luxury goods industry should be familiar with the ecological concerns. Ecological trends could influence consumers purchase decisions as well as the perception of the brand. Legal Factor All fashion and leather goods industry will have to comply with rules and regulations. LVMH should be aware of laws that protect consumers, competitors, and corporations. For instance, comprehending labor laws and intellectual property laws. Threat of Entry The Asian luxury goods market has shown strong rates of growth in recent years. Chinese and Indian retailers are making growing fast, which increases the industries attractiveness to new entrants. Nevertheless, old players in this industry have the advantage of sustaining brand loyalty. â€Å"New operators may find it difficult to enter the industry, as these large corporations already hold a substantial portion of the market (IBISWorld, 2013, p.24).† Power of Suppliers The key suppliers in the luxury goods market are clothing manufacturers and wholesalers. Many companies are outsourcing to foreign manufacturers and increasing supplier options. Due to low-wage regions like China and India, supplier power has decreased through its competition. Power of Buyers This industry has a wide range of buyers and each customer should be seen as an individual consumer, which weakens the buyer power. In fashion and leather goods, LVMH can differentiate themselves through the unique styles and exclusive products. Threat of Substitutes There are many substitutes for luxury goods, including counterfeit and homemade goods. However, luxury goods are so highly differential, and consumers with disposable income will make the investment. Rivalry Among Existing Competitors The fashion and leather goods market is divided, creating room for many smaller players. While the industry shows high margins, LVMH has outperformed its competitors. As an older player with a highly differentiated product line, LVMH has a competitive advantage, setting it apart from competition.

Types of Businesses in America Essay -- Business Law

Types of Businesses in America American society has always been optimistic towards their future. The American nation is a capitalistic country. Many individuals are influenced to start up their own businesses with their own ideas. The government helps and regulates all business. There are three types of businesses sole proprietorships, partnerships and corporations. A sole proprietorship would be my best choice to start up my own business. This form of business is the easiest to start. In the states a federal license or permit is needed to sell products or serve a service to the public. A license is required in order to begin the business operation. Income or loss the owner is accounted for on the tax return. â€Å"Flow thru taxation† is the term used to state that the owner’s incomes flows through the tax return. I would keep contact daily with my accountant. The business would not be taxed twice as there would be in corporations. It is simply taxed once. I would not need contracts stating two peo ple joining in and making an effort to make a business work as there would be in partnerships. I would just rely on myself. I have better confidence of trusting myself than trusting others in forming a partnership. It is a gamble and a risk to be liable for the entire business. Life is pretty short and taking a risk would either mean it was worth it or you learn from it. Since it’s the easiest form of business to start why not take full advantage. But there are advantages and disadvantages. In a sole proprietorship there is limited capital which means the owner would have trouble getting the supplies and materials needed for. But it would also seem harder to borrow money and loans from the bank. A loan from the bank seems like the ... ...g. Businesses structures and regulations are strong and firm which help businesses around the nation. The rules and regulations from the federal government help and keep the people safe. Starting a business is easy and profitable. It may be easier to start a sole proprietorship rather than a corporation. But many can receive help from family or friend and start a partnership where there is help and support of a partner. There are advantages and disadvantages for all forms of business. There are endless opportunities for the American people. There optimistic attitudes can lead them to great wealth. Works Cited Pride, William M., Hughes Robert J., Kapoor Jack R. Business. Publisher: Boston: Houghton Mifflin Co. 8th edition. â€Å"Sole proprietorship/Partnerships/Corporations.† Wikipedia. 5, August, 2005.7,August, 2005. http://en.wikipedia.org/wiki/Main_Page

Article with logical fallacies Essay

Christians believe God created the whole world because he had the powers, this make them argue out the theory of evolution which states that each and every creature that exist has undergone the process of evolution. Due to the believe in the theory of creation, religion has given trust to their creator who is god, from the ancestral time to modern time. Many societies have followed this because their ancestors had practiced this for a very long time. Christians believe in faith and they argue that their faith is difficult to destroy since they believe in the word of god which was prophesized and written in the bible by men who were inspired by god and this believes have forced non- believers in the society into Christianity. The study of the bible has also strengthen the Christian believe since it has given them reliable evidence that their powerful god exist and one day he shall come into existence and he will save them from the temptation they encounter each and every day . Figure out what kind of logical fallacy is used and how it is used. Logical fallacies are the detects that weakens our arguments or reasoning, It can also be defined as error in reasoning. By having the strength to look at different types of fallacies we are able to evaluate the arguments, readings etc Fallacies have also helped us to improve our critical way of looking at things. The following logical fallacies have been identified in the above article; Fallacies that appeals to galley or Argumentum ad populum this is a fallacy that make people accept something because it is done or accepted by many people, an example in the above article is where people in the society decide to follow Christianity because they found other people had already accepted to follow it. Argumentum ad atiquitatem or fallacy of accepting something since it has been there for along time, example is the above article is where people in the society have accepted to be converted to Christianity since they believe it has been their for along time, therefore it is good to be followed. Argumentum ad baculum or Fallacy that appeal to force in order to prevail in debate, this particular type of fallacy is seen widely in the religion whereby a powerful religion forces non- believers to accept believe in the religion . In the above article non believers are forced to believe that god exists and they should believe in him. Lastly there is the Fallacy where conclusion is drawn from unconnected premises. For example in the above article bible has been believed to have been written by god`s people who were inspired by god, So when people read the bible and learn that it was prophesized by god, they are unable to evaluate it into creative thinking. Reference www. philosophychatforum. com

H. H. Holmes - 2284 Words

DR. H. H. Holmes, One of Americas first Serial Killers. Tommy Smith Criminal Justice Case Study Instructor: Dennis Stephens 3/24/11 Bibliography Borowski, John (November 2005). Estrada, Dimas. ed. The Strange Case of Dr. H. H. Holmes: Worlds First Serial Killer. West Hollywood, CA: Waterfront Productions. â€Å"H. H. Holmes Biography.† 2011 AE Television Networks http://www.biography.com/articles/H.-H.-Holmes-307622?part=1 Holmes, H. H. Holmes Own Story. Burk McFetridge, 1895. Ramsland, Katherine. â€Å"H. H. Holmes: Master of Illusion.† http://www.trutv.com/library/crime/serial_killers/history/holmes/.html Schecter, Harold (August 2008). Depraved: The Definitive True Story of H. H. Holmes, Whose Grotesque Crimes Shattered Turn-of-the-Century†¦show more content†¦Holmes purchased a lot across from the drugstore and built what would be later known as his Murder Castle (which is where it is believed that he hid the bodies of Dr. E.S. Holton and his wife). Holmes would open it up as a hotel for the Worlds Columbian Exposition in 1893, with part of the structure used as commercial space. The ground floor of the Castle contained Holmess own relocated drugstore and various shops, while the upper two floors contained his personal office and a maze of over one hundred windowless rooms with doorways opening to brick walls, oddly angled hallways, stairways to nowhere, doors opened only from the outside, and a host of other strange and labyrinthine constructions. Holmes repeatedly changed builders during the construction of the Castle, so only he fully understood the design of the house, thus decreasing the chance of being reported to the police. Holmes selected mostly female victims from among his employees (many of which were required as a condition of employment to take out life insurance policies for which Holmes would pay the premiums but also be the beneficiary), as well as his lovers and hotel guests. He tortured and killed them in some of the worst possible ways you could imagine. Some were locked in soundproof bedrooms fitted with gas lines that let him asphyxiate them at any time and some were locked in a huge soundproof bank vault near his office where they were left to suffocate. HeShow MoreRelatedH. H. Holmes1891 Words   |  8 Pagesnothing new to today’s society. Jeffrey Dahmer, John Wayne Gacy and Ted Bundy shocked our nation with their violent, brutal, and at times unbelievable crimes, although none of them were as notorious as Herman Webster Mudgett better known as Dr. H.H. Holmes. A man that carried himself as a smart, intellectual member of society, but in reality he was a smooth talking conman an d very disturbed individual. A man who designed and built a building with torture rooms that would serve as his play house. BeingRead MoreCase study on Dr. H. H. Holmes1268 Words   |  6 Pages Clinical Psychology Case study of Dr. H.H. Holmes Case Overview Dr. H.H. Holmes is considered America s first serial killer. The number of victims is estimated to be 27, and later discoveries of corpses revealed as many as 200. Holmes initially committed crimes such as fraud and forgery. In 1893 he built a three story building and named it the castle as a hotel, drug store, and commercial store fronts for the Chicago World s Fair. Holmes used the windowless hotel to lure his victims inRead MoreSerial Killers: H. H. Holmes Essay2491 Words   |  10 Pagesthe Ripper was executing his victims in London, Holmes began his gruesome career in Chicago (America’s Serial Killers). â€Å"Despite being America’s first serial killer, Holmes is hardly a familiar name and until now we haven’t had any popular visual record of his crimes: (Spikol). Why is it that people only think of the more popular killers with higher known profiles? They are all very similar to one another because they share characteristics. H.H. Holmes was a successful serial killer because he wasRead MoreDr. H. H. Holmes: Americas First Serial Killer Essay1527 Words   |  7 Pagespoet can help the inspiration to sing – I was born with the Evil One standing as my sponsor beside the bed where I was ushered in the world, and he has been with me since† (Troy, Taylor). This statement was a quoted confession from Dr. H. H. Holmes himself in 1896. Holmes was the first major serial killer in America, even though he came after many others in his time. Thomas Neil Cream, the Austin Axe Murderer, the Bloody Benders, and Jack the Ripper came before him. His name was originally Herman WebsterRead MoreComparison Of H, H. Holmes, And Gary Ridgway And The Green River Killer1817 Words   |  8 PagesH.H Holmes, as well as Gary Ridgway, AKA The Green River Killer. While both of them are similar in many aspects, in some ways they are worlds apart. H. H Holmes was born Herman Webster Mudgett in Gilmanton New Hampshire to parents Levi Horton Mudgett and Theodate Page Price. Holmes was the third child born into his family, youngest of an older brother named Arthur and an older sister named Mary. Born into an affluent family, Holmes was said to be remarkably intelligent at a young age. Holmes parentsRead MoreH. Holmes : The First American Serial Killer1332 Words   |  6 PagesH. H. Holmes Henry Herman Holmes was known to many as the first American serial killer. Better known as just H. H. Holmes, he committed many murders in a suburb on the south side of Chicago during the late 1800’s. Holmes once admitted to police that he killed 27 people, but many actually predict that the number of murders he committed is near 200 (Handley). So what is the real number of people that he killed? Let’s take a closer look at the facts of Holmes’ life, occupation, and the mansionRead MoreThe White City By Erik Larson887 Words   |  4 PagesWhite City† surrounds the events of the 1893 Columbian Exposition World’s Fair in Chicago. Larson does a magnificent job intertwining the lives of two men who were changed by the events of the fair. Daniel H. Burnham, the brilliant architect behind the legendary 1893 World s Fair and Dr. H. H. Holmes, the cunning serial killer who used the fair to lure his victims to their death. The purpose of this review is not only to summarize Larson’s fascinating and satisfying work which vividly portrays oneRead MoreThe Night At The Corner Of A Street1686 Words   |  7 Pagesseem like something out of a horror movie, these horrid events really did take place. This so called hotel, known today as â€Å"The Murder Castle†, was an elaborate contraption created by Herman Webster Mudgett, who is more commonly known as H. H. Holmes. Dr. Holmes opened The World’s Fair Hotel, now referred to as The Murder Castle, where he killed and dissected his victims in order to feed his insatiable bloodlust and greed. This man might as well have been the Devil himself, and his hotel the Devil’sRead MoreModern Architecture, Ferris Wheels, 1500 Pound Chocolate Bars1787 Words   |  8 Pages Classical architecture, ferris wheels, 1500 pound chocolate bars. These new, unheard of attractions at the Columbian Exposition attracted millions of unsuspecting, innocent guests to the preying gro und of the narcissistic Dr. H. H. Holmes. Chicago, Illinois, the host of the 1983 World’s Fair, was home to this sadistic serial killer who attracted his prey using his education and occupation as a means to gain trust from new, unsuspecting travelers from the 46 nations who participated in the expositionRead MoreSummary Of Erik Larson s The Devil s The Red Devil And Where Is The White City1176 Words   |  5 Pagesentwines two true stories that, at first glance, don t seem to have much to do with each other: First, the story of architect and urban planner, Daniel H. Burnham, who masterminded the 1893 World s Fair in Chicago; second, the tale of Dr. H. H. Holmes, who has been called America s first serial killer. By now, you ve probably guessed that Holmes, who may have lured more than 200 people to their deaths in an elaborately-constructed building dubbed ‘The Murder Castle’, is the Devil of Larson s title