Louis Vuitton is the world's leading luxury products group. The strategy of LVMH is based on incorporating LVMH fashion and leather goods. It retain its brand spirits and do things which will vary from another one. The many strategies of LV are the following:-
The most significant strategy is price strategy. The prices of Louis Vuitton productions are never take off even the customer often buys hand bags. This kind of die-hard advertising strategy makes customers follow the footsteps of Louis Vuitton more directly.
Louis Vuitton is also adopting customization; customers will come to the stores of Louis Vuitton and place the special requests. The company doesn't provide the facility of ordering through website nevertheless they prefer the self appearance of the client as it is more desirable.
Capital budgeting refers to the process in which a firm determines whether a task or investment will probably be worth pursuing. More often than not, the process will involve a long-term assessment of the cash inflow and outflows to ascertain if the profits generated meet up with the investment appraisal. The most common methods used are the world wide web present value (NPV) where evaluation of the task is based on the amount by which its value is maximized. Other methods or tools found in decision making include: the internal rate of come back (IRR), a version of the IRR known as the modified interior rate of return (MIRR), the discounted payback period (DPB), a profitability index method (PI) and the original payback method. Whatever the demerits provided by each, most businesses or financial managers tend to stick to a certain method of capital budgeting.