Competitive Advantage at Louis Vuitton and Gucci Case Study

Competitive Advantage at Louis Vuitton and Gucci - Case Study Example This research is the best example of comparison of two brands. Both LVMH and Gucci host a number of luxurious brands which have their own individuality in terms of designing, inbound and outbound logistics, marketing and value to these companies. The most important success factor for these companies has been the valuable brands they serve. These brands have a long established history for delivering products which have been appreciated and accepted as the source of luxury. By luxury we mean products or services which have high economic value and have a limited market of the richest and elites. Both companies have cultivated strong marketing tools to ensure that their brands remain active in the market and are not renounced at any times. Furthermore, their presence and major fashion shows in major cities including New York, Paris, Milan, London, Singapore and Berlin creates a real impact for these companies. The overall impact of rejuvenating brand is increasing demand for prestigious products even at higher prices than market average. The second most important success factor is that these companies have constantly engaged in the process of evolving. From just being single business line entities they have not been hesitant to explore opportunities available in the market. This is mainly due to the inspirations and charisma of the groups’ creative directors who had long term vision for making their brands as household name. The companies have grown as conglomerate of brands with product lines in different market segments however keeping in view the value in terms of the extravagance and luxury for their users. The companies have been able to differentiate from their competitors in many ways. Most importantly is that these companies have kept a unique culture and control over the use of their brands. They have not allowed excessive franchising and licensing of their brand which would dilute their brands as experienced by some of the leading fashion brands su ch as Pierre Cardin which lost its presence in the luxury market because of the overuse of the brand in 1980s for over 800 products (Lynch, 2005). The consideration of the companies' value chains indicate that both companies aim to work with controlled suppliers