Michael Burke, a Louis Vuitton (LVMH) insider who had been with the company for nearly 30 years, is the newest CEO of LVMH. Burke is uncertain about whether the company can keep a sustainable growth rate similar to the successful previous years. The issue Burke is currently facing is how to push the company to grow steadily and protect their values and heritage from being diminished. One of the choices that can be made is to keep the same speed of international expansion. By doing so, they can steadily develop the Asia-Pacific market as well as maintain the same or even higher level of product and service quality. A second choice is to accelerate the speed of international expansion. They could start to manufacture for example, perfumes, and open more stores in the Asia Pacific market due to high demand. Lastly, they can slow down the speed of international expansion. This therefore will reduce the use of the automatic machines, and keep on adding value in the company's heritage and tradition rather than undermining them. .
Louis Vuitton is considered to be under the luxury goods industry. The luxury goods industry is a highly profitable industry. There are only few large competition in the industry and they fulfill desires to mostly wealthy people. The luxury companies have high power to control the price so they therefore have the ability to grow sustainably.
The degree of rivalry is moderate in the global personal luxury goods industry. The industry is very concentrated and occupied by a few large competitors. These companies do not need to compete with their prices, however, they have high overlap within their products category. Most of these companies have several common characteristics. These characteristics include things such as: they have long history and start business in European areas, they all provide exclusive products and services backed by their brands, and they all served few amount of wealthiest customers all over the world.
