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Acquisition of LVMH
LVMH (Moet-Hennesy Lousi Vuitto
A business plan is vital when planning on acquiring a company. The business has to prove that it can withstand the competition in the market and whether it can attract clients, key employees and other relations. The company background must be well scrutinized showing all the balance sheets to confirm how it has been performing. The company's projection must all be noted before acquiring this company. LVMH has a unique method of supplying its own products.
This is a company that has been in the market long enough and has survived the economic crisis. Since its merger in 1987, this company has only shown growth while adding new products to its markets all the time. The profit margins are great with an excellent working team. The SWOT analysis shows an increase in sales by the year. The supplies have met the demand which is a positive indication of its performance. With its unique business, the competition is not stiff at the moment hence a wider market. The marketing strategy is enhanced by the technologies being applied by the marketing team and is diversified enough to reach to every citizen.
Background Information
LVMH is a company that was created back in 1987 and has been among the biggest vendors of luxury goods. Some of the products involved include handbags, champagnes and perfumes. It has divisions in the leather products and perfumes which are prominent brands like Kenzo, Celine, and Givenchy among others. In the wine and spirits group there is Hennessey, Dom Perignon, Krug, and Moet Chandon. The company was however...
He started off by packing their clothes but later due to his expertise and knowledge in wood and satin, he started packing their creations. He built workshops and started transporting wood and he later focused on trunk-making other than packing. Then there was his partner Moet Hennessey whose lines were in perfume and champagnes and together they formed this great company.
Company assessment
This is a company that has shown potential growth by the number of stores and the net profits that are reflected by the research reports. The company has entered into major partnerships, and this helps it remain competitive in the markets. One of such companies is the Italian Prada and it acquired a majority stake in the fashion house. The company also partnered with Thomas Pink a shirt designer and they also purchased Phillips Auctioneers. These are major strengths of this company using the strategy of partnership to beat competition.
Financial Data (Millions Euros)
2006
2007
2008
2009
2010
Sales
15300
16400
17200
17000
20300
Net returns
12000
Total equity
11600
12500
13800
14790
18200
Future performance-
This is a corporation that has shown a lot of growth through the years. By the year 1999, the company shares had gone up by 77%. The expansion of its stores…
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