Case study

Case Questions
1.The use of joint ventures for diversification has advantages in three situations. Discuss each of these situations and the relevance of each strategy to LVMH business and portfolio growth.
2.Developing a diversity strategy, a business must execute and apply a three-step process. Describe each of the steps, and select the step that you deem the most important consideration for LVMH. Detail the rationale for your selection.
3.The business strategy adopted by Bernard Arnault centered on the sale of luxury products and services utilizing retail channels. Did the use of retail channels enhance or detract from the diversity of LVMH products and services? Be detailed and expansive in your response.
4.LVMH largely sought to diversify by acquisition of related businesses in the luxury brand market. Describe the concept of “strategic fit” as it applies to LVMH. Did LVMH effectively leverage a strategic alignment with acquisition targets?

Sample Solution

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