Buy custom LVMH: Expanding Brand Dominace in Asia
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 913 |
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The profits generated from one of the daughter companies can counterbalance the loss of the other daughter company. For example, in Exhibit 5, the total income of LVMH was still be maintained even if some business groups were suffering losses. Last but not least, the diversification of product lines enables easy and better chance to raise capitals because each daughter brand may go public at its own sake to increase equity...
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In addition, cash flows on each sub-branding become less liquid because of sharing resources. The most adverse situation would be the inability to dominate each markets, thus the brand names under the same business category become enemy as they share the same customer base.
4. LVMH can control its business effectively in different country markets by:
Think global, act local: There should be highly fit to currency and language shift in each countries...
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