Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Harvard Case Study Solution

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Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution & Analysis


Historically, the company's core customers consist of the Original Devices Manufacturers (OEMs), which used to sell Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help products withtheir own brand name. Its customer circle includes Original Devices Manufacturers (OEMs), who used to offer Corporation items with their own brand name. He rearranged Business as a global brand and educated his divisional managers to comprehend marketing and its significance.

Problem Statement

Org's transition from a product based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to integrate marketing efficiently is still a significant challenge. Developing a consistent brand identity across the entire world and employing marketing techniques that finest fits the regional culture is no easy task.
Executive Summary
Situational Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution efforts for building its brand throughout the world was started after introducing the "new management effort" by Chairman Lee in 1993. The objective was to change Org from a cheap OEM to a high value-added product service provider. To make the vision of Org a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear image in his mind about how Enterprise can transform from a low end to a high-end item service provider. He knew that improvement can only be done through placing Venture as a company providing high-end products and this might just be done through high level of marketing.

In spite of having a clear vision about how to develop Corporation brand, with a prospective support of its executives, Yun dealt with numerous marketing obstacles in early years of its efforts.

One of the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was too much high, the space was too larger and to fill this space with incorrect perceptions about marketing was rather tough for Yun.

Along with it the product range of the company was increasing with the ripening of new product ideas by the R&D sector of Corp. Yun had a challenge to carry out marketing planning and to create marketing budgets for existing as well as for brand-new products from the very start, and this would take a big time.

A substantial shift would be needed in existing marketing expenditures to develop the Corp brand name. This would result in increased marketing expenditures for Corp and could interrupt the administration regarding increased expenses, as they were hesitant to marketing expenses previously and an abrupt big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis strengths lie in its substantial item portfolio. Corp has biggest number of patents in the industry with overall number of 15499 patents approved in United States( USP).

Another strength of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is its ability to develop ingenious products at a continuous rate. It significant shows for the development and item developing of Business is that the business has gotten so many awards for its innovation and item design.

Unlike Apple and other competitors, Venture is concentrated on producing gadgets which can be easily integrated with any kind of open source Operating System (OS) and software application. This provides Enterprise an edge over Apple devices.
Porter's 5 Forces Analysis
Company's ability to produce high end products at low expense of production is likewise among the significant strength of Org as it allows the business to capture more market by supplying quality products with expense control.

Weak points

Organization's weaknesses are hidden in the company's dependence on outsourcing software application for its gadgets due to business's failure in establishing software application, unlike Sony. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis also has low profit margins as compare to Apple due to huge distinction in the costs of Apple and Corp with a much lower difference in quality.


Opportunities for Enterprise lie in the growing Mobile phone market and the company's efficiency in the market. It can increase its market share and revenues from mobile phone as the business is rather efficient in smart phone market. Enterprise currently runs in about 80 nations and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to acquire patents. It would enable the business to increase its item portfolio with a boost in its wealth.


The vibrant market environment of technology industry position a severe risk on Company's survival and require the business to spend much of its profits share on R&D in order to survive in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is likewise a huge hazard for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis uses quality products and has a quite rich portfolio which accommodates various segments. Most of the products remain in the leading 3 of their respective markets. LCD and cellphones are the greatest products of Business, whereas DRAM is also not far behind in comparison of them. Following is the product line of Corporation:

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Hard disks.
• Washer.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help utilizes both market competitive and market skimming prices strategies for its variety of items. In competitive pricing it changes the rate according to the competition in order to gain advantage, whereas, it utilizes market skimming method where the item has an included value and by offering a couple of items it can reach break-even.


It has one of the best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon etc. All its items are timely supplied to the selling place/ provided to the clients directly in case of online order.

Vrio Analysis
It utilizes both offline & online channels of promotion to market their products. Paid product advertisements, social promo and digital advertisements are uses to produce awareness about Enterprise products.

Value Chain Analysis.

It's an analytical structure for recognizing company activities that add worth or competitive benefit for the business.

Inbound Logistics.

It has one of the most efficient and reliable supply chain network and has over 2700 providers throughout different markets worldwide. Almost 80% of which is based in Asia and the staying around the world. For its inbound logistics it owns various logistics firms as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even lowered their payment cycles to enhance this relationship even more which adds worth to their chain network.


Corporation's core competency is its mass making it produces 90% of its items internal. Divided into three various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is keeping operation centers worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main factors Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis has the ability to take on Apple. Org's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Corp.

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to interact with them the value and competitive benefit the item provides. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis marketing budget plan is continually growing given that they began their rearranging worldwide and will continue to do so as they are continually aiming to invest and broaden in high prospective growth markets. The budget is spent on events, print and media advertisements, public relations etc.

Enterprise put their consumers at the leading and constantly strive to provide unmatchable consumer service standards. By adding a direct support line to call them 24 hours they have actually even more increased the included value of Venture service.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution has diversified market segmentation, based upon its arrangement of wide range of products to large number of customers. Org target customer segments can be divided into 3 categories i.e. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help IT and Mobile Communications, Enterprise Customer Electronic Devices and Business Device services.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution geographical segmentation is based upon two criteria i.e. area and density. Organization serves about 80 countries worldwide with its products provided to Urban as well as Rural areas of the country. The Corporation is also growing its global presence and the company's flexibility in locating its plants motivates international growth of Business.


Organization produces items that can be used by both females and males. The target consumers for Venture IT and mobile communication products have an age variety of 18-65 with bulk at a young or recently wed life cycle phase. Apart from it, Enterprise Customer Electronic devices are targeted to a consumer sector with an age variety of 25-65.


The psychographic segmentation of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help s based upon the social class and the life style of the consumer. Company target clients on the basis of social class are primarily upper middle, middle and working class clients, as Business sell items like mobile phone very little more affordable i.e. Motorola in addition to very little expensive i.e. Apple. It supplies quality items to middle level consumers at a slightly high cost than others targeting the exact same segment.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis majority target clients have special behavioural characteristics. They are brought in towards Org since of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Enterprise has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually likewise reduced its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Business with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead cost, earnings/ sales are increasing but net revenue is not increasing accordingly. New growths and hiring's were the main reason of the boost in the overhead costs, with china currently not supplying any profit to Company, but there is so much potential in the existing market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the business is presently making however long gone are those days when great products were selling themselves. Kim has actually already begun to reinforce the marketing activities of Business and really soon it will end up being one of its core strength like manufacturing if not much better.



Corp runs styles, produces and sell a vast portfolio of consumer electronic devices. It operates in an incredibly competitive environment and has actually successfully placed itself as the maker of quality products. So, the response is yes.


As, said previously that Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help operates in an extremely competitive environment, which means all the business have similar items. So, the answer for rarity is no.


Due to the nature of the industry, it is extremely easy for competitors to understand the functionality of the products and easily make their own models. Yes, Business is only behind IBM in signing up new patents every year, however the advantage is really short-term in this industry.


Chairman Lee has totally turnaround Corporation, from going almost insolvent during the Asian monetary crisis of 1997 to the top 25 business on the planet. Absolutely yes there appertains organization in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every country worldwide, majority of the environments like USA, Europe, China etc., are very conductive for its operations. It deals with some political pressures in less industrialized countries where law and order scenario is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help operations.


Buying power of consumers is important for companies like Company to prosper and grow. Emerging markets like India, middle-eastern nations etc. offer development opportunities, whereas, due to recession even the clients of developed countries suffer badly. It is really essential for the business to keep an eye on the ongoing financial situation of the nation prior to entering the market.


Multinational companies have to face various social and cultural problems throughout its operations in a foreign country. Organization has likewise dealt with many issues however have actually embraced to the local environments of most of the countries remarkably well. It has actually customized its items, practices, policies etc. appropriately in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with constant ingenious product launches, Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help is one of the top ingenious business of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Enterprise has risen to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational company Corporation need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. It has to study or hire a regional law expert before starting its operations in a particular country.


With the increasing awareness among consumers about the ecological & ethical offenses of companies, Venture needs to make sure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not appropriate and in some nations the consequences can be extremely serious. On the other hand it has to do some Corporate Social Duty practices to show the locals that it cares about their environment and people.

Porter's Five Forces

Danger of Substitution

Hazard of substitution for Corp's each item classification is rather considerable. Factors for high hazard of substitution for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution Smart device consist of the existence of high number of providers and Market saturation in industrialized countries, which make the expense of changing for customers practically no. Along with it, Org printing solutions products are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Company and its close rivals is extreme. The significant factor behind this is the approach of market saturation in numerous number of product categories, requiring Organization to present more ingenious features in existing items and new innovative items to maintain its development. The significant competitors for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

( Corporation Sustainability Report, 2016) Provider's bargaining power for Org is low as Corp runs economies of scale and its orders are of potential size and worth. Due to incapability of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help to develop its own software application, it has to outsource its software development to Google, which ends up being a prospective provider of software for Enterprise, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the item categories likewise make the bargaining power of purchasers more intense in for Corporation. In spite of igh bargaining power Org is rather capable of offering its products at a higher price than much of its competitors, due to high end quality item and a fair brand name image.

Hazard of New Entrants:

Threat of new entrants for Corporation is quite low. One of the significant element for low hazard of new entrants is the high competition in the market. The requirement of substantial amount of capital to enter in the market is likewise one of the possible barrier to entry. In addition to it, requirement of big know-how and research and advancement expenses for survival in the industry also make new entrants hesitant to enter in the marketplace. Market saturation is also one of the barrier of entry in technology industry. High bargaining power of providers force the players in the market to charge as low costs as possible and this can only be achieved by production performance. Brand-new companies, in bulk cases, lack the production performance, for this reason increasing the risks for entryway in the innovation market.

Competitive Analysis

Business's high product diversity provides it distinction from its rivals. It is one of the three leading brands by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony concentrating on consumer electronics, Nokia on cellular phone and Intel on chips, Venture had a big R&D spending on all of its product classifications which allow the business to make possible earnings from sales of practically all of its items. (See Exhibit) Nevertheless, due to the broad item range the company deals with high number of competitors.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to worldwide market share, among 8 various product categories. Company was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Enterprise incomes from chips was less than Intel but its profits from chips was growing quicker than Intel and has grown close to the profits levels of Intel, as offered in the case Exhibit 2.

Along with the chips Corp mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Enterprise's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The significant reson behind Corporation's high growth despite of higher prices than Nokia and Motorola was the company's high-end quality mobile phone.

Corporation was likewise reaping the benefits from increasing market share of high-end LCDs as given up case Display 3. The significant reason, making the company make it possible for to get the opportunity is its mass production at low expense. Sony was the most significant competitor for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution in LCD market, nevertheless, it had actually also started joint endeavor with Venture in 2003 for LCD producing, lessening the competitors for Business.

Porter's Competitive Technique

Low Expense Leadership technique of porter is totally executed by Company the method they attain economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, since they were not able to compete with them on low cost. Distinction is another technique well carried out by Company by constant financial investment in the R&D and remaining ahead of the competitors. They constantly bring something ingenious and new whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help would produce a new brand image by targeting the younger generation of the particular country. As, particularly smart phones of Org are popular among the younger market.


1. It is the best method to build Customer Life time Worth (CLV) by producing a long-lasting relationship with clients. Build loyalty through delivering worth and profit for long-lasting, as research has revealed it is much cheaper to retain current clients than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly among younger people and which in turn will bring in brand-new clients for my products.


1. Old clients who were connected with Corporation prior to may not like this new image the company is trying to portray.
2 It will incur more expenditures to rearrange some items and it may not even bring success as the patterns alter really quickly amongst the younger market.

Alternative option 2.

It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be given. Marketing environment must be developed internally first as real marketing starts inside the corporation.


1. Its pro will be that all the marketing method fans will come out and also the opposite ones.


2. Its con can create a very unhealthy environment in the office, as individuals often withstand change due to the fact that they fear it.

Recognize the very best option

Option is the finest as it clearly has more pros due to the fact that once a Client Life time Value is constructed the business will profit from it till that consumer is alive and has acquiring power. Plus, our target customers are the more youthful generation which are bound to live longer than the present old age people. Corp's main goal is to create loyalty among its clients and make them repurchase it from them and even buy their various products.

Implementation Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations practical and attainable.
• A group including finest marketing and sales experts should be assemble, and both views need to be considered before protecting the resources needed to carry out the plan.
• Thorough communication of the plan need to be done as it is very important for everybody to be on the same page to make it work.
• Jobs and timelines should be develop and interacted appropriately to each individual accountable.
• The manager must use a dashboard which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor must keep track of and keep a constant examine the overall and specific efficiency.
Due to the fact that any brand-new trend or policy might come in due to which all the things already prepared have actually to be changed, • Everybody need to be ready to adapt midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the manager must interact the results and if successful ought to commemorate with the group.


The M-net program exposed engaging analysis about the high and low development prospective locations and just how much marketing spending plan need to be assigned appropriately. This change the budget allotment of various nations and numerous managers were dissatisfied and argued but the analysis done by the program was precise and revealed figures like The United States and Canada and Russia development prospective warranted a 35% allocation while they were receiving 45%. Whereas, China and Europe should be getting 42% however were rather provided 31%. It actually assisted to relatively distribute the resources and capture more consumers by spending more on ads on the high growth potential regions of the world.

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is a top 25 company on the planet now and plans to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and ingenious practices have actually propelled them to new heights but for them its' just the start and they wish to be among the top 3 brand names worldwide. They totally turn-around from almost going bankrupt during the Asian Financial Crisis to a world renowned brand name, known for quality and innovation. Their value chain and their core proficiency their manufacturing ability, along-with worldwide brand name image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts must be directed towards younger market amid the internal arguments about marketing and need to produce Client Life time Value as it will not just give them benefits now however will continue to gain it till the client life time. As the expense of keeping the customer is more affordable than attracting a new one.