lvmh case study strategic management

Lessons in cultivating luxury: LVMH’s brand strategies and business model

What do Dior couture gowns, Sephora stores, Fenty Beauty by Rihanna, Louis Vuitton luggage and Moet et Chandon champagne have in common? Them and about 66 other iconic brands belong to the world’s first and now largest luxury group, LVMH , or Louis Vuitton Moët Hennessy. 

According to Wikipedia, the company was formed in Paris, 1987, by Bernard Arnault, through the merger of fashion house Louis Vuitton with Moët Hennessy and is growing consistently, with $53 Billion in revenue in 2019 alone. The 75 subsidiaries can be categorized under six branches: Fashion Group, Wines and Spirits, Perfumes and Cosmetics, Watches and Jewelry, Selective Distribution, and Other Activities.

In a brutally saturated luxury landscape, the group has managed to make fashion and leather goods its most profitable branch , with Wines and Spirits coming in at a close second. Creativity and innovation are at the heart of the conglomerate’s massive success. There are two parts to this – the first is the carefully executed luxury strategy and the second is an innovative business model that empowers 70+ brands. 

Before we go further, it is important to understand why luxury strategy needs to break rules and what a luxury brand is .

Just being expensive (a relative, comparative word), does not equal luxury . Neither does luxury equal being absolutely perfect.  Some might make the argument that a pair of H&M trousers is a luxury to a high school student. But being a luxury to someone is not equal to being a luxury brand. 

Luxury vs premium – let’s break it down

To qualify as a luxury brand, the brand needs: a unique heritage that’s upheld still, luxury price points, a higher dream to represent, top notch products and an influence on culture and customers. 

Here’s the perfect example from ‘The Luxury Strategy’ by Jean-Noel Kapferer and Vincent Bastien, professors at HEC Paris and key experts in the luxury business: 

“BMW had reached 90% of their sales target for the next year automatically. But when the Head of BMW USA was asked whether he’s done for the year, he replied, ‘My job is to make sure that the 18-year-olds in this country decide that, as soon as they have the money, they will be buying a BMW. I have to see to it that when they go to bed at night they are dreaming of BMW.’”

That is what differentiates luxury (eg. Dior, Fendi, Tag Heuer) from simply premium brands (eg. Seiko, Clinique). The latter’s USP is just a higher quality product at a reasonable price. If you look at LVMH’s brands closely, you’ll quickly realise that all of them sell a dream and a story – even more accessible brands of the group, such as Sephora.

To understand how it plays out in especially for LVMH in product and marketing, here are a few very interesting “Anti-laws of marketing” that pertain exclusively to the luxury segment, explained elegantly in the book, ‘The Luxury Strategy’: –

DON’T pander to your customers’ wishes

This is a cardinal sin in marketing for, say, an FMCG product, however, not so in luxury. Just because customers like something today doesn’t mean that the design team at Louis Vuitton will change the next collection to make it fit the currently desired aesthetic. Brands such as Louis Vuitton and Celine govern taste. What they create will eventually be copied and trickle down to fast fashion brands such as Zara and Fashion Nova.

Cultivate closeness to the Arts

With creativity at its heart, LVMH has earned a place as a patron of the arts and positioned itself as a supporter of rising talent (not just established names). For example, The Louis Vuitton Foundation art museum in Paris focuses on the avant-garde and Louis Vuitton itself sponsors contemporary music performances. 

On to the next part, LVMH Group’s business model comprises of four factors that give it its competitive advantage :

1. decentralized organizational structure.

In decentralized organizations, most decisions are made by mid-level or lower level managers, rather than by the head. Each “Maison” or brand at LVMH operates autonomously across functions and therefore is able to respond quickly. Each fashion brand, such as Dior, has its own creative director, just like each of its perfume brands has its own Marketing Head.

2. Vertical Integration

The group controls its value chains, including production and distribution completely. Luxury is always attached to history and history is attached to a culture, a place, a city. This is why LVMH manufactures its top luxury products in their place of origin, while only relocating less premium lines to facilities outside of it. 

3. Investment in innovation and its houses

To foster organic long term growth, LVMH invests heavily into its brands, including product innovations, creative teams and initiatives around art. This also puts LVMH at the forefront of “the new” and acts as its own campaign in helping the world discover talent. 

For example, it introduced innovative startups such as Fenty by Rihanna and started the coveted LVMH Prize for discovering young designers (that’s how the fashion world discovered Grace Wales Bonner and Simon Jacquemus).

4. A balanced international portfolio  

What we do in our group is the opposite of the bad effects of globalization. We produce in Italy and in France and we sell to China , when usually it’s the opposite. Bernard Arnault, CEO, LVMH

You might have heard recent news of LVMH’s multi-billion dollar acquisition of US luxury jewelry brand, Tiffany & Co. While most of LVMH’s iconic brands hail from its own home, France, in recent years, LVMH has strategically expanded both physically with selective retailing and via acquisitions of local luxury brands. This portfolio approach allows the group to stay balanced without depending on a particular market.

After reading this, it is almost no surprise that the group is as successful as it is. Despite Covid-19, LVMH saw a 12% growth in its sales in the third quarter of 2020. In conclusion, LVMH’s success can be attributed to strategic acquisitions combined with the constant nurturing of its brands via autonomous creativity. Who thought something that simple could be this effective? Well, I guess that’s just luxury.

Interested in reading  Luxury Business Strategies ? Check out our collection.

Also check out our most loved stories below

Johnnie Walker – The legend that keeps walking!

Johnnie Walker is a 200 years old brand but it is still going strong with its marketing strategies and bold attitude to challenge the conventional norms.

Starbucks prices products on value not cost. Why?

In value-based pricing, products are price based on the perceived value instead of cost. Starbucks has mastered the art of value-based pricing. How?

Nike doesn’t sell shoes. It sells an idea!!

Nike has built one of the most powerful brands in the world through its benefit based marketing strategy. What is this strategy and how Nike has used it?

Domino’s is not a pizza delivery company. What is it then?

How one step towards digital transformation completely changed the brand perception of Domino’s from a pizza delivery company to a technology company?

BlackRock, the story of the world’s largest shadow bank

BlackRock has $7.9 trillion worth of Asset Under Management which is equal to 91 sovereign wealth funds managed. What made it unknown but a massive banker?

Why does Tesla’s Zero Dollar Budget Marketing Strategy work?

Touted as the most valuable car company in the world, Tesla firmly sticks to its zero dollar marketing. Then what is Tesla’s marketing strategy?

The Nokia Saga – Rise, Fall and Return

Nokia is a perfect case study of a business that once invincible but failed to maintain leadership as it did not innovate as fast as its competitors did!

Yahoo! The story of strategic mistakes

Yahoo’s story or case study is full of strategic mistakes. From wrong to missed acquisitions, wrong CEOs, the list is endless. No matter how great the product was!!

Apple – A Unique Take on Social Media Strategy

Apple’s social media strategy is extremely unusual. In this piece, we connect Apple’s unique and successful take on social media to its core values.

Vona Roberta is a digital marketer and fashion journalist with global experience across fashion, sustainability, and content. She has formerly contributed to Elle and Conde Nast in India and Europe. She was also the youngest executive team member at two of India's biggest fashion retail events. On lighter days, she likes to visit the latest art exhibit, read books on business and practice yoga or boxing (depending on the caffeine level!).

Related Posts

Dior Marketing Strategy: Redefining Luxury

Dunkin-licious marketing mix and Strategy of Dunkin Donuts

Healthy business model & marketing strategy of HelloFresh

Twist, Lick, and Dunk- Oreo’s Marketing Strategy

The Inclusive Marketing Strategy of ICICI Bank

Nestle’s Marketing Strategy of Expertise in Nutrition

M&M’s Marketing Strategy: Bringing Sweetness and Color to the World

Dettol Marketing Strategy of customer belongingness

WOW Skin Science Marketing Strategy – Creating a niche in a multi-brand category

Patagonia’s purpose-driven Marketing Strategy

Nescafe Marketing Strategy: Lesson in Pull Marketing

Ferrari’s Marketing Strategy of Maintaining Exclusivity

The colorful Marketing Strategy of Miniso

Coca Cola Marketing Strategy, Plan & Mix (4Ps)

Marketing & Advertising Strategy of Apple: A critical lens

Vegemite iSnack 2.0: A lesson in brand management

Write a comment cancel reply.

Save my name, email, and website in this browser for the next time I comment.

• Advanced Strategies
• Brand Marketing
• Digital Marketing
• Luxury Business
• Startup Strategies
• 1 Minute Strategy Stories
• Business Or Revenue Model
• Forward Thinking Strategies
• Infographics
• Publish & Promote Your Article
• Write Article
• Testimonials
• TSS Programs
• Fight Against Covid
• Privacy Policy
• Terms and condition
• Refund/Cancellation Policy
• Master Sessions
• Live Courses
• Playbook & Guides

Type above and press Enter to search. Press Esc to cancel.

About Stanford GSB

• The Leadership
• Dean’s Updates
• School News & History
• Commencement
• Business, Government & Society
• Centers & Institutes
• Center for Entrepreneurial Studies
• Center for Social Innovation
• Stanford Seed

About the Experience

• Learning at Stanford GSB
• Experiential Learning
• Guest Speakers
• Entrepreneurship
• Social Innovation
• Communication
• Life at Stanford GSB
• Collaborative Environment
• Activities & Organizations
• Student Services
• Housing Options
• International Students

Full-Time Degree Programs

• Why Stanford MBA
• Academic Experience
• Financial Aid
• Why Stanford MSx
• Research Fellows Program
• See All Programs

Non-Degree & Certificate Programs

• Executive Education
• Stanford Executive Program
• Programs for Organizations
• The Difference
• Online Programs
• Stanford LEAD
• Seed Transformation Program
• Aspire Program
• Seed Spark Program
• Faculty Profiles
• Academic Areas
• Awards & Honors
• Conferences

Faculty Research

• Publications
• Working Papers
• Case Studies

Research Hub

• Research Labs & Initiatives
• Business Library
• Data, Analytics & Research Computing
• Behavioral Lab

Research Labs

• Cities, Housing & Society Lab
• Golub Capital Social Impact Lab

Research Initiatives

• Corporate Governance Research Initiative
• Corporations and Society Initiative
• Policy and Innovation Initiative
• Rapid Decarbonization Initiative
• Stanford Latino Entrepreneurship Initiative
• Value Chain Innovation Initiative
• Venture Capital Initiative
• Career & Success
• Climate & Sustainability
• Corporate Governance
• Culture & Society
• Finance & Investing
• Government & Politics
• Leadership & Management
• Markets and Trade
• Operations & Logistics
• Opportunity & Access
• Technology & AI
• Opinion & Analysis
• Email Newsletter

Welcome, Alumni

• Communities
• Digital Communities & Tools
• Regional Chapters
• Women’s Programs
• Identity Chapters
• Find Your Reunion
• Career Resources
• Job Search Resources
• Career & Life Transitions
• Programs & Webinars
• Career Video Library
• Alumni Education
• Research Resources
• Volunteering
• Alumni News
• Class Notes
• Alumni Voices
• Contact Alumni Relations
• Upcoming Events

Admission Events & Information Sessions

• MBA Program
• MSx Program
• PhD Program
• Alumni Events
• All Other Events
• Operations, Information & Technology
• Organizational Behavior
• Political Economy
• Classical Liberalism
• The Eddie Lunch
• Accounting Summer Camp
• California Econometrics Conference
• California Quantitative Marketing PhD Conference
• California School Conference
• China India Insights Conference
• Homo economicus, Evolving
• Political Economics (2023–24)
• Scaling Geologic Storage of CO2 (2023–24)
• A Resilient Pacific: Building Connections, Envisioning Solutions
• Adaptation and Innovation
• Changing Climate
• Civil Society
• Climate Impact Summit
• Climate Science
• Corporate Carbon Disclosures
• Earth’s Seafloor
• Environmental Justice
• Operations and Information Technology
• Organizations
• Sustainability Reporting and Control
• Taking the Pulse of the Planet
• Urban Infrastructure
• Watershed Restoration
• Junior Faculty Workshop on Financial Regulation and Banking
• Ken Singleton Celebration
• Marketing Camp
• Quantitative Marketing PhD Alumni Conference
• Presentations
• Theory and Inference in Accounting Research
• Stanford Closer Look Series
• Quick Guides
• Core Concepts
• Journal Articles
• Glossary of Terms
• Faculty & Staff
• Subscribe to Corporate Governance Emails
• Researchers & Students
• Research Approach
• Charitable Giving
• Financial Health
• Government Services
• Workers & Careers
• Short Course
• Adaptive & Iterative Experimentation
• Incentive Design
• Social Sciences & Behavioral Nudges
• Bandit Experiment Application
• Conferences & Events
• Get Involved
• Reading Materials
• Teaching & Curriculum
• Energy Entrepreneurship
• Faculty & Affiliates
• SOLE Report
• Responsible Supply Chains
• Current Study Usage
• Pre-Registration Information
• Participate in a Study

LVMH in 2011: Sustaining Leadership in the Global Luxury Goods Industry

• See the Current DEI Report
• Supporting Data
• Research & Insights
• Share Your Thoughts
• Search Fund Primer
• Affiliated Faculty
• Faculty Advisors
• Louis W. Foster Resource Center
• Defining Social Innovation
• Impact Compass
• Global Health Innovation Insights
• Faculty Affiliates
• Student Awards & Certificates
• Changemakers
• Dean Jonathan Levin
• Dean Garth Saloner
• Dean Robert Joss
• Dean Michael Spence
• Dean Robert Jaedicke
• Dean Rene McPherson
• Dean Arjay Miller
• Dean Ernest Arbuckle
• Dean Jacob Hugh Jackson
• Dean Willard Hotchkiss
• Faculty in Memoriam
• Stanford GSB Firsts
• Annual Alumni Dinner
• Class of 2024 Candidates
• Certificate & Award Recipients
• Dean’s Remarks
• Keynote Address
• Teaching Approach
• Analysis and Measurement of Impact
• The Corporate Entrepreneur: Startup in a Grown-Up Enterprise
• Data-Driven Impact
• Designing Experiments for Impact
• Digital Marketing
• The Founder’s Right Hand
• Marketing for Measurable Change
• Product Management
• Public Policy Lab: Financial Challenges Facing US Cities
• Public Policy Lab: Homelessness in California
• Lab Features
• Curricular Integration
• View From The Top
• Formation of New Ventures
• Managing Growing Enterprises
• Startup Garage
• Explore Beyond the Classroom
• Stanford Venture Studio
• Summer Program
• Workshops & Events
• The Five Lenses of Entrepreneurship
• Leadership Labs
• Executive Challenge
• Arbuckle Leadership Fellows Program
• Selection Process
• Training Schedule
• Time Commitment
• Learning Expectations
• Post-Training Opportunities
• Who Should Apply
• Introductory T-Groups
• Leadership for Society Program
• Certificate
• 2024 Awardees
• 2023 Awardees
• 2022 Awardees
• 2021 Awardees
• 2020 Awardees
• 2019 Awardees
• 2018 Awardees
• Social Management Immersion Fund
• Stanford Impact Founder Fellowships
• Stanford Impact Leader Prizes
• Social Entrepreneurship
• Stanford GSB Impact Fund
• Economic Development
• Energy & Environment
• Stanford GSB Residences
• Environmental Leadership
• Stanford GSB Artwork
• A Closer Look
• California & the Bay Area
• Voices of Stanford GSB
• Business & Beneficial Technology
• Business & Sustainability
• Business & Free Markets
• Business, Government, and Society Forum
• Second Year
• Global Experiences
• JD/MBA Joint Degree
• MA Education/MBA Joint Degree
• MD/MBA Dual Degree
• MPP/MBA Joint Degree
• MS Computer Science/MBA Joint Degree
• MS Electrical Engineering/MBA Joint Degree
• MS Environment and Resources (E-IPER)/MBA Joint Degree
• Academic Calendar
• Clubs & Activities
• LGBTQ+ Students
• Military Veterans
• Minorities & People of Color
• Partners & Families
• Students with Disabilities
• Student Support
• Residential Life
• Student Voices
• MBA Alumni Voices
• A Week in the Life
• Career Support
• Employment Outcomes
• Cost of Attendance
• Knight-Hennessy Scholars Program
• Yellow Ribbon Program
• BOLD Fellows Fund
• Application Process
• Loan Forgiveness
• Contact the Financial Aid Office
• Evaluation Criteria
• GMAT & GRE
• English Language Proficiency
• Personal Information, Activities & Awards
• Professional Experience
• Letters of Recommendation
• Optional Short Answer Questions
• Application Fee
• Reapplication
• Deferred Enrollment
• Joint & Dual Degrees
• Entering Class Profile
• Event Schedule
• Ambassadors
• New & Noteworthy
• Ask a Question
• See Why Stanford MSx
• Is MSx Right for You?
• MSx Stories
• Leadership Development
• How You Will Learn
• Admission Events
• Personal Information
• GMAT, GRE & EA
• English Proficiency Tests
• Career Change
• Career Advancement
• Career Support and Resources
• Daycare, Schools & Camps
• U.S. Citizens and Permanent Residents
• Requirements
• Requirements: Behavioral
• Requirements: Quantitative
• Requirements: Macro
• Requirements: Micro
• Annual Evaluations
• Field Examination
• Research Activities
• Research Papers
• Dissertation
• Oral Examination
• Current Students
• Education & CV
• International Applicants
• Statement of Purpose
• Reapplicants
• Application Fee Waiver
• Deadline & Decisions
• Job Market Candidates
• Academic Placements
• Stay in Touch
• Faculty Mentors
• Current Fellows
• Standard Track
• Fellowship & Benefits
• Group Enrollment
• Program Formats
• Developing a Program
• Diversity & Inclusion
• Strategic Transformation
• Program Experience
• Contact Client Services
• Campus Experience
• Live Online Experience
• Silicon Valley & Bay Area
• Digital Credentials
• Faculty Spotlights
• Participant Spotlights
• Eligibility
• International Participants
• Stanford Ignite
• Frequently Asked Questions
• Founding Donors
• Program Contacts
• Location Information
• Participant Profile
• Network Membership
• Program Impact
• Collaborators
• Entrepreneur Profiles
• Company Spotlights
• Seed Transformation Network
• Responsibilities
• Current Coaches
• How to Apply
• Meet the Consultants
• Meet the Interns
• Intern Profiles
• Collaborate
• Research Library
• News & Insights
• Databases & Datasets
• Research Guides
• Consultations
• Research Workshops
• Career Research
• Research Data Services
• Course Reserves
• Course Research Guides
• Material Loan Periods
• Fines & Other Charges
• Document Delivery
• Interlibrary Loan
• Equipment Checkout
• Print & Scan
• MBA & MSx Students
• PhD Students
• Other Stanford Students
• Faculty Assistants
• Research Assistants
• Stanford GSB Alumni
• Telling Our Story
• Staff Directory
• Site Registration
• Alumni Directory
• Alumni Email
• Privacy Settings & My Profile
• Success Stories
• The Story of Circles
• Support Women’s Circles
• Stanford Women on Boards Initiative
• Alumnae Spotlights
• Insights & Research
• Industry & Professional
• Entrepreneurial Commitment Group
• Recent Alumni
• Half-Century Club
• Fall Reunions
• Spring Reunions
• MBA 25th Reunion
• Half-Century Club Reunion
• Faculty Lectures
• Ernest C. Arbuckle Award
• Alison Elliott Exceptional Achievement Award
• ENCORE Award
• Excellence in Leadership Award
• John W. Gardner Volunteer Leadership Award
• Robert K. Jaedicke Faculty Award
• Jack McDonald Military Service Appreciation Award
• Jerry I. Porras Latino Leadership Award
• Tapestry Award
• Student & Alumni Events
• Executive Recruiters
• Interviewing
• Land the Perfect Job with LinkedIn
• Negotiating
• Elevator Pitch
• Email Best Practices
• Resumes & Cover Letters
• Self-Assessment
• Whitney Birdwell Ball
• Margaret Brooks
• Bryn Panee Burkhart
• Margaret Chan
• Ricki Frankel
• Peter Gandolfo
• Cindy W. Greig
• Natalie Guillen
• Carly Janson
• Sloan Klein
• Sherri Appel Lassila
• Stuart Meyer
• Tanisha Parrish
• Virginia Roberson
• Philippe Taieb
• Michael Takagawa
• Terra Winston
• Johanna Wise
• Debbie Wolter
• Rebecca Zucker
• Complimentary Coaching
• Changing Careers
• Work-Life Integration
• Career Breaks
• Flexible Work
• Encore Careers
• Join a Board
• D&B Hoovers
• Data Axle (ReferenceUSA)
• EBSCO Business Source
• Global Newsstream
• Market Share Reporter
• ProQuest One Business
• RKMA Market Research Handbook Series
• Student Clubs
• Entrepreneurial Students
• Stanford GSB Trust
• Alumni Community
• How to Volunteer
• Springboard Sessions
• Consulting Projects
• 2020 – 2029
• 2010 – 2019
• 2000 – 2009
• 1990 – 1999
• 1980 – 1989
• 1970 – 1979
• 1960 – 1969
• 1950 – 1959
• 1940 – 1949
• Service Areas
• ACT History
• ACT Awards Celebration
• ACT Governance Structure
• Building Leadership for ACT
• Individual Leadership Positions
• Leadership Role Overview
• Purpose of the ACT Management Board
• Contact ACT
• Business & Nonprofit Communities
• Reunion Volunteers
• Ways to Give
• Fiscal Year Report
• Business School Fund Leadership Council
• Planned Giving Options
• Planned Giving Benefits
• Planned Gifts and Reunions
• Legacy Partners
• Giving News & Stories
• Giving Deadlines
• Development Staff
• Submit Class Notes
• Class Secretaries
• Board of Directors
• Health Care
• Sustainability
• Class Takeaways
• All Else Equal: Making Better Decisions
• If/Then: Business, Leadership, Society
• Grit & Growth
• Think Fast, Talk Smart
• Spring 2022
• Spring 2021
• Autumn 2020
• Summer 2020
• Winter 2020
• In the Media
• For Journalists
• DCI Fellows
• Other Auditors
• Academic Calendar & Deadlines
• Course Materials
• Entrepreneurial Resources
• Campus Drive Grove
• Campus Drive Lawn
• CEMEX Auditorium
• King Community Court
• Seawell Family Boardroom
• Stanford GSB Bowl
• Stanford Investors Common
• Town Square
• Vidalakis Courtyard
• Vidalakis Dining Hall
• Catering Services
• Policies & Guidelines
• Reservations
• Contact Faculty Recruiting
• Lecturer Positions
• Postdoctoral Positions
• Accommodations
• CMC-Managed Interviews
• Recruiter-Managed Interviews
• Virtual Interviews
• Campus & Virtual
• Search for Candidates
• Think Globally
• Recruiting Calendar
• Recruiting Policies
• Full-Time Employment
• Summer Employment
• Entrepreneurial Summer Program
• Global Management Immersion Experience
• Social-Purpose Summer Internships
• Process Overview
• Project Types
• Client Eligibility Criteria
• Client Screening
• ACT Leadership
• Social Innovation & Nonprofit Management Resources
• Develop Your Organization’s Talent
• Centers & Initiatives
• Student Fellowships

🇺🇦    make metadata, not war

Strategic Analysis- Understanding the Global Luxury Brand A case study on LVMH

• Asmita Basu Chatterjee
• info:eu-repo/semantics/article
• info:eu-repo/semantics/publishedVersion
• Strategic Management
• Strategic analysis, LVMH, SWOT, PESTLE, Porter’s Model

Similar works

Asian Journal of Multidisciplinary Studies (AJMS)

This paper was published in Asian Journal of Multidisciplinary Studies (AJMS) .

Having an issue?

Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Management of a luxury brand: dimensions and sub-variables from a case study of LVMH

Related Papers

Journal of Brand Management

Michel GUTSATZ

International journal of business strategy and automation

Pratap chandra Mandal

gerald mazzalovo

Liverpool 17th Toulon Verona Conference Excellence in Services

roberta pezzetti

Prashant Mehta

Luxury branding and marketing is a new ball-game altogether, both from the perspective of the marketer as well as the consumer. Luxury brands have always been seen as a fascinating space and luxury brand marketing as one of the most complicated areas to develop strategies and marketing mix. Consumer‟s perception of value is changing and their concept of luxury is metamorphosing. It therefore becomes imperative to view it form both angles that is in relation to and isolation from the „regular‟ goods and their marketing strategies. Over time LUXURY meant different things to people in different cultures. It is a conceptual and symbolic dimension mainly irrational and engages strong and intense multi-sensory emotions of consumers. It is also a culture and a philosophy and therefore requires deep understanding of the brand and its profile, before the adoption of business practices because its particulars and marketing mix strategies are fundamentally different from other types (regular) of goods and services. As quoted by Philip Kotler “Luxury is above all a world of brands”. The luxury brands go beyond the object, they are built from the reputation of its creations. It is crucial to listen to the client although consumer‟s attitudes and behaviors towards luxury are ambivalent and for them the most important characteristics are: quality of goods, self indulgence, and ancestral heritage. This paper identifies several key factors for luxury brand success by analyzing its marketing mix and how luxury goods are different from regular goods and then go on to explore some facets and trends of the luxury goods as well as their market and consumers, impact of internet technologies, and Intellectual Property violations. Considering that the luxury concept has shifted to the „new‟ meaning, we look into that aspect to understand the key drivers for luxury brands in today‟s context, as well as in the future.

David Millán Planelles

Business Horizons

Nic Terblanche

N Stegemann

Geoff Simmons

Status and conspicuousness: are they related? Strategic marketing implications for luxury brands, Journal of strategic marketing, vol. 16, no. 3, pp. 189-203.

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

Contextus – Revista Contemporânea de Economia e Gestão

Eugenio De la Oliva Ramos

shagun khanna

Sameer Agrawal

Journal of Business Research

Hareem Malik

Wioleta Dryl

Journal of Marketing Research and Case Studies

Valentina Diaconu

Proceedings of the International Conference on Business Excellence

Ekonomia Międzynarodowa

Joanna Pietrzak

International Marketing Review

Cleopatra Veloutsou

Journal of Statistics and Management Systems

Farkhanda Afzal

Uranee Yokanit

The Mystique of Luxury Brands Conference

Osmud Rahman

Jean-noel Kapferer

Journal La Bisecoman

Dr ROMMEL MAGLAYA

Diogo Campo Grande

Journal of Global Fashion Marketing

elisabetta savelli

Sandor Czellar

Proceedings of the Australian and New …

Karen Miller

Spanish Journal of Marketing - ESIC

Sustainability

Alpaslan Kelleci

Marta Jakubowska

A. Caroline Tynan , Celine Chhuon

Management & Marketing Craiova

Raluca Ciornea , Alexandra Tirca

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Louis Vuitton, a Digital Advertising & Strategy Case Study

As one of the most recognizable names in the luxury space, Louis Vuitton certainly enjoys its position today. One could argue that Louis Vuitton’s success has been over 150 fifty years in the making. Since its founding in 1854, the French fashion house has carefully built and sustained its image of preeminence—a must for luxury brands who are developed on the aura of exclusivity. Of course, the turn of the new millennium has ushered in a vastly different world from that of the century Louis Vuitton was founded. With it, comes the need to engage with consumers in a way that still upholds the values the luxury brand has sustained.  ‍

In the midst of seismic consumer shifts, Louis Vuitton has doubled down on the strengths of its name and adopted new ones that herald continued growth heading into an increasingly more digital consumer landscape. In this take on Louis Vuitton’s advertising strategy, we dive into what the famed fashion house has done, what it is doing at the moment, and what it plans on doing in the near future. 

At the heart of Louis Vuitton’s advertising are their very own products. It’s said that the best form of advertising is an unwavering focus on a brand’s core offering, and Louis Vuitton exemplifies that mantra. The handmade and traditional craftsmanship in every Louis Vuitton bag denotes the premium quality for which the brand is known for. Even as modern times have expedited the manufacturing process, Louis Vuitton remains steadfast in having handmade leather goods done by experienced workers that produces a virtually impossible-to-replicate ware. And it is precisely this level of wardship over its production line that makes Louis Vuitton the sought-after luxury brand that it is.  

Then there is the distinctive use of the brand’s LV initials prominently displayed on every one of its goods that consumers can exhibit and signify to the world that they are a devotee of quality design and craftsmanship. But while the artistry that goes behind every luxury good is certainly a contributing factor to Louis Vuitton’s long history and success, it is only a single element that the brand relies on as it navigates through the increasingly more digital world. What that means for Louis Vuitton is the need to champion progressive changes to attract today’s luxury consumer. 

As part of its digital strategy, Louis Vuitton has hired some of the most notable icons in fashion today. From rehiring handbag ace Johnny Coca to naming Off-White CEO Off-White Virgil Abloh as artistic director of men’s wear, Louis Vuitton demonstrates it is making the rounds to draw the younger generation of shoppers, who by and large are becoming a bigger portion of the luxury market. 

Coca’s rehiring is a full circle journey that signals the French fashion house will continue to cherish its long and rich heritage while embracing innovation. For his part, Abloh represents a move for Louis Vuitton that it values a modern approach to fashion, as well as inclusion and diversity. Again, both of the male fashion hires point to one thing: Louis Vuitton is intent on capturing the attention of the increasingly younger luxury market. 

In addition to Louis Vuitton adding a gauntlet of talent successful with younger shoppers, the French fashion house has also tapped on some of the biggest style icons and celebrities today to act as ambassadors for the brand. Angelina Jolie, Pharrell Williams, Jennifer Lopez, and Billie Eilish are just some of the various names Louis Vuitton has starred in its campaigns. 

Though Louis Vuitton has been known for its use of print media to target consumers, it has recently invested into its digital marketing strategy to more comprehensively reach the segment of the audience who lives online. While there is not much known about how much Louis Vuitton spends on its digital marketing strategy, we can infer that the brand has delved deeper into social media platforms such as Instagram and Twitter. As two of the most visual mediums, Louis Vuitton perhaps chose Instagram and Twitter to demonstrate the more graphic-oriented material the brand wishes to broadcast, such as their steps to become more sustainable or the campaigns featuring some of the aforementioned style icons—each made to capture the attention of younger luxury shoppers. 

A view at Louis Vuitton’s social media profiles also reveals their efforts to build a consistent and coherent strategy for undeviating brand integrity. No matter what social media outlet you choose, Louis Vuitton’s visual content is the same throughout. Also sustaining this solidarity in brand image is Louis Vuitton’s use of both conventional and event-specfic tags. All posts from the brand are tagged #LouisVuitton, with event-specific tags allowing for its followers to track any specific updates. One such example was Louis Vuitton’s New York Volez, Vogues, Voyaguez Exhibition, for which it tagged all related event posts with #NYCVVV for a streamlined manner of labeling their experiences.  

In a homage to how it started, Louis Vuitton has also incorporated red-stamped initials in some campaigns, most notably featuring modern-day style icons like Jaden Smith, Alicia Vikander, and Léa Seydoux. The famed monogramming service Louis Vuitton has built its brand upon and its promoting of it encourages luxury shoppers to join them. “It’s this ingenuity that both appeals to the younger generation and plays on what Louis Vuitton does best that makes their digital strategy uniquely captivating,” says Juan Manuel Gonzalez, founder of UI/UX and luxury marketing agency G & Co.  

But Louis Vuitton’s advertising strategy is not only limited to the expenditures it makes to promote the brand itself. The brand most definitely considers its products’ artisanship to be their most perceptible selling point. The personalizing design of its custom goods is what allows Louis Vuitton to demand a high figure for their wares. In an age of cheap, mass production, Louis Vuitton has committed to its long history of workmanship quality. 

And to preserve the reputation of superior goods, Louis Vuitton has kept a close guard on how its products are distributed. Until recently, if a shopper wanted to buy a Louis Vuitton good, they would have to go to a Louis Vuitton officially store or a licensed distributor in-person. And while Louis Vuitton has in recent years upgraded its eCommerce strategy and digital transformation, the brand still has a tight hold over how it sells its products. Because of its trained sales staff and endowment in delivering an exceptional store experience, Louis Vuitton believes it is best that the shopping experience be as close to the brand as possible. 

Additionally, Louis Vuitton has been adamant in maintaining its premium pricing policy. Under no condition is a product from Louis Vuitton to be reduced in price. The perception of its wares is something sacred to Louis Vuitton, and in its more than 150-year history, the brand has never deviated from its value-based pricing. Of course, the trade-off is knowing that a Louis Vuitton product is a mark of guaranteed quality. 

What Louis Vuitton is doing in addition to continuing to put out some of the most meticulously crafted luxury goods is an accommodation of the digital world as part of its advertising strategy. Counting the Volez, Vogues, Voyaguez Exhibition, Louis Vuitton has integrated the perceptible lifestyle component as part of its brand. That includes broadcasting events and featuring celebrities with a high affinity with the young luxury consumer today.

Among the various campaigns Louis Vuitton has launched as part of its advertising strategy is its Make A Promise collaboration with UNICEF, in which the French luxury brand supported vulnerable children around the world through donating the revenue made from exclusive bracelets. That particular campaign invited people to post a photo with the hashtag #makeapromise, with Louis Vuitton models spurring what would turn into a flurry of user-generated content that raised nearly $10 million in donations. 

Then there is the 2017 Cruise show, in which Louis Vuitton made the best use of the scenery in Rio de Janeiro. Like the Volez, Vogues, Voyaguez Exhibition, Louis Vuitton featured Jaden Smith and Alicia Vikander, as well as Zendaya, Alessandra Ambrioso and Isabeli Fontana. The Nicolas Ghesquiere collection displayed at that show was published for all of Louis Vuitton’s more than 15 million Instagram followers. 

For its spring-summer 2020 line, Louis Vuitton’s show included a diverse cast walking the runway for the first time to demonstrate the brand’s esteem for inclusion, talent, and artists. The show included Arsenal star Héctor Bellerín, skateboarders and Louis Vuitton collaborators Lucien Clarke and Evan Mock, and models Gigi Hadid, Swae Lee, with Scottish pop star Sophie’s music video for “It’s Okay to Cry” serving as the backdrop for the event. These high-profile appearances are very much in line with Louis Vuitton’s marketing strategy to attract the increasingly younger luxury consumer. 

Through a presentation of its lines as an interactive and personalized experience, Louis Vuitton’s advertising strategy is one that embodies a lifestyle rather than just a purveying of its luxury wares. Unlike the typical marketing strategy, Louis Vuitton exemplifies an approach to advertising that encompasses the entirety of its offerings as part of the luxury experience. In its long history, Louis Vuitton has never wavered from the craftsmanship of every product it places on the market, nor has it relented in providing the utmost shopping experience. 

“But the further we turn deeper in the digital age, we should not mistake the storied French luxury brand as resistant to change,” says Juan Manuel Gonzalez, head of the luxury digital agency G & Co. “If we’ve seen anything in the last few years from Louis Vuitton, it’s that there’s certainly room for brands to stay true to what has made them prosperous and still innovate for the changing times. We can say that as an advertising agency and as an admirer of the brand’s legacy, the push for breaking new barriers has us excited to see what more there is to come from Louis Vuitton’s advertising strategy.” ‍

How much does Louis V uitton spe nd on digital marketing and advertising? ‍

Louis Vuitton spent an estimated $100 million on both digital marketing and advertising, mostly consisting of its print media. ‍

What did Louis Vuit ton do for a digital transformation? ‍

Louis Vuitton’s digital transformation consists of an overall strengthening of its user experience. In 2017, Louis Vuitton parent company LVMH launched its multi-brand fashion eCommerce site, 24 Sèvres , to fortify its digital strategy and bring itself up to speed with the times. 

Louis Vuitton specifically has benefited from LVMH’s naming of Michael David as the newly-created chief omnichannel officer, a sign that the luxury conglomerate is taking eCommerce seriously in the midst of pandemic-induced store closures. Now, Louis Vuitton offers online support features such as info on item availability, click-and-collect ordering and payments, or scheduling appointments to try on products—a move that considerably matches the convenience that luxury consumers expect from high-end brands.  ‍

What is Louis V uitton’s digital strategy? ‍

Louis Vuitton’s digital strategy was a task in transferring the success of their in-store experience to the online world.

Because younger consumers continue to make up the luxury market, Louis Vuitton needed to adapt and meet them where they spend the majority of their time: online. 

The hesitation behind embracing the online world and employing a digital strategy in recent years has dissipated, with Louis Vuitton now employing a more functional eCommerce platform that grants consumers the convenience of being able to select and purchase one of their high-end wares online.

Of course, Louis Vuitton parent company LVMH keeps a watchful eye over its 75 brands and each of their distribution channels. Hence, the route Louis Vuitton is delving into its digital strategy is most identifiable to compare to would be that of the direct-to-consumer model (DTC). With this digital innovation approach, Louis Vuitton has complete control over its brand, its image, and has no barrier in between they and their customers to better understand the dynamic in their relationship through behaviors and preferences. All this allows the luxury brand to iterate, improve, and deliver on the things their customers want most. It surely will help Louis Vuitton’s digital strategy become better than anyone had previously thought. ‍

What is Louis Vui tton’s custome r experience (CX)? ‍

Nothing could be more important than the customer experience for Louis Vuitton. In their eyes, what matters most is that the luxury brand provides a personalized and rewarding experience for every one of their customers. Louis Vuitton understands that in luxury retailing, the service their customers receive is the pinnacle of a luxury experience. 

As part of extending the customer experience to reach beyond in-store shopping, Louis Vuitton has invested heavily to develop their online stores into more than the transactional eCommerce model to become a comprehensive and creative platform for customers to utilize and shop from. Louis Vuitton understands that to carry the same level of high-quality in their customers received in-store, they would have to translate that experience online to reach younger audiences.  ‍

Who is Louis Vuitto n’s targe t market/customer? ‍

Louis Vuitton’s target market are consumers residing in metropolitan areas such as Paris, London, Hong Kong, New York, and Toronto. These consumers are aged 18-54 and with annual incomes exceeding $75,000, though more focus seems to be shifting towards attracting the younger segment of the luxury market.  ‍

What is luxury brand digita l marketing, ho w is it different? ‍

Because of the brand positioning, a luxury brand’s digital strategy will have to look different than any other brand’s in terms of how it engages with customers, showcases its products, and communicates its value. 

As a luxury marketing agency and advertising agency, we understand that instead of the push promotion strategy, luxury brands need to pull consumer interest through relevant and engaging content. How a luxury brand chooses to pull that interest is for them to choose. 

Have a question about luxury digital marketing? Shoot us an email at [email protected]. ‍

Why is UI/UX important fo r luxury brand eCommerce stores?‍ ‍

A good user interface (UI) and user experience (UX) is essential for any eCommerce store in that it helps browsers easily navigate a website for the sole purpose of making their customer journey easier to finish. Most importantly, an eCommerce store is a window into a brand’s image; the first impression a browser makes when coming across a shop can easily determine whether or not they will continue browsing and ultimately purchase something.‍ ‍

Why is eComme rce important for any luxury business?‍ ‍

In the rapidly changing world we live in, it’s important now more than ever for brands to adapt to evolving consumer needs. And that includes meeting them where they are. ‍As an advertising agency and luxury eCommerce agency, we know the value in a consumer-centric strategy to help luxury brands excel for the future.  ‍

How i s eCommerce d ifferent for luxury and non luxury brands?‍ ‍

It’s not enough for luxury brands to have a branded site just to check the box off on eCommerce. Consumers today want an experience that matches the quality of a luxury product they purchase. That’s why luxury brands place a great emphasis on tailoring their approach to play on consumer sentiment and meet the mark of exclusivity.

More Resources

• 2024 Elections and Brands: Business of Fashion x G & Co.
• [VIDEO] The State of Digital Experience in Retail 2024
• The New Consumer Landscape and Work-From-Home Impact | The Retail & Consumer Index
• Retail Trends and Predictions for the U.S. Holiday Season | The Retail & Consumer Index
• Top Retail Market Research Agencies to Work With - September 2024
• eCommerce UX: Essential Design Strategies and Principles
• What is Competitive Intelligence and How Retailers Can Leverage It for a Competitive Advantage
• A Guide to Incorporating Competitive Intelligence in Your eCommerce Strategy
• How to Develop a Competitive Retail Customer Experience Strategy
• What is Retail Analytics + a List of Top 9 Analytics Software Solutions
• How To Perform a Retail Competitor Analysis (With Benefits)
• Top Digital Transformation Agencies & Consulting Firms to Work With - September 2024
• Top Best Retail Consulting Firms to Work With - September 2024
• Top Product Design Agencies to Work With - September 2024
• Top Fashion & Luxury Creative & Media Agencies to Work With - September 2024
• Top Fashion & Luxury Marketing & Advertising Agencies to Work With - September 2024
• Retail Industry Analysis: State of Retail, Outlook, Market Growth
• Top Mobile App Agencies to Work With - September 2024
• Top Shopify Plus Agencies to Work With - September 2024
• Top Digital Product Agencies to Work With - September 2024
• Warby Parker—an Advertising and Marketing Strategy Case Study
• UI/UX Design Deliverables from an eCommerce Agency
• User Experience - UX Resource 2023
• Top 10 Best Performing Brands in 2021 - G & Co. Innovation Index®
• Top Global Retail, Fashion, and Luxury Industry Index 2023: The State of Brands' Digital Performance & Strategy
• LVMH, Digital Advertising & Strategy Case Study
• Guide to Luxury Marketing Strategy: A Luxury Marketing Agency’s Take on What Brands Should Know
• Retail and Apparel Benchmark Index 2022: The State of Consumer Brands' Customer Experience
• Luxury eCommerce: Reshaping through Digital in 2023
• Hermès, an eCommerce Case Study
• Guide to Luxury Digital Strategy: A Luxury Digital Agency’s Take on What High-End Brands Should Know
• Louis Vuitton, an eCommerce Case Study
• Luxury Brands in 2023: Digital Marketing and Customer Experience (CX)
• Guide to Luxury Digital Agencies: What to Look for in a Digital Partner
• Kering, a Luxury Digital Advertising & Strategy Case Study
• Guide to DTC Marketing Strategy: A DTC Marketing Agency’s Take on What Brands Need to Know
• Gucci, Digital Advertising & Strategy Case Study
• Gucci, an eCommerce Case Study
• Guide to DTC Digital Agencies: What to Look for in a Digital Partner
• Activewear & Athleisure Industry Index 2021: The State of Activewear Brands' Digital Performance & Strategy
• G & Co. IQ Mapping - Benchmarking Brand & Customer Experiences through Data & Strategy
• Five Industries Poised to Win the 2021 Holiday Shopping Season & Beyond
• DTC Digital Marketing: from a DTC Digital Agency
• Fashion and Apparel, and Luxury Brands in 2021: eCommerce and Direct-to-Consumer (DTC) Strategy and Insight
• Fashion & Apparel Industry Index 2021: The State of Fashion Brands' Digital Performance & Strategy
• What is DTC Marketing?: A Beginner's Guide to Direct-to-Consumer (DTC)
• Fashion & Apparel Brands in 2021: Direct to Consumer (DTC) and User Experience (UX) - Industry Insights & Strategy
• Customer Experience in 2021: What to Learn from the Best Performing Brands in the Fashion, Retail, and Apparel Industry
• Fashion, Apparel, & Luxury: Key Themes for the Industry in 2021 - Digital Insight and Strategy
• Chanel, an eCommerce Case Study
• Customer Experience - CX Survey 2021

LVMH Share Quotation:

• Candidate Portal

Language selector

• Français FR
• ITALIANO IT

• ALL PUBLICATIONS
• PRESS RELEASES
• PRESENTATIONS
• OTHER PUBLICATIONS

LVMH PUBLICATIONS

Agenda-setting intelligence, analysis and advice for the global fashion community.

News & Analysis

• Professional Exclusives
• The News in Brief
• Sustainability
• Direct-to-Consumer
• Global Markets
• Fashion Week
• Workplace & Talent
• Entrepreneurship
• Financial Markets
• Newsletters
• Case Studies
• Masterclasses
• Special Editions
• The State of Fashion
• Read Careers Advice
• BoF Professional
• BoF Careers
• BoF Insights
• Our Journalism
• Work With Us
• Read daily fashion news
• Download special reports
• Sign up for essential email briefings
• Follow topics of interest
• Receive event invitations
• Create job alerts

Case Study | Inside the $7 Billion Dior Phenomenon

• Robert Williams

Key insights

• Since 2017, Dior has become one of fashion’s fastest-growing and most profitable brands, with estimated revenues tripling to €6.6 billion.
• This BoF case study breaks down how Dior overhauled its product offer and marketing strategies under a new CEO, Pietro Beccari, and designers Maria Grazia Chiuri and Kim Jones.
• In addition to creating a diversified menu of hit products, Dior rolled out multi-layered store experiences and raced into e-commerce, tapping pent-up demand from consumers outside the shopping capitals where it operates stores.

In 1947, mere months after its founding, Christian Dior Couture revolutionised women’s dressing with its post-war “New Look,” securing a place at the pinnacle of French fashion. Later, Dior became the cornerstone of the luxury empire of LVMH chairman Bernard Arnault, who has invested in the house with a “sky’s the limit” approach since the 1980s. But for many years, Dior’s brand, one of modern luxury’s most famous and prestigious marks, remained bigger than its business.

In 2017, LVMH took full control of Christian Dior, kicking off a series of moves that would radically accelerate the business. Under new chief executive Pietro Beccari and designers Maria Grazia Chiuri and Kim Jones, Dior’s business has grown rapidly, with sales roughly tripling since the deal. Its newfound scale has created a virtuous cycle, allowing it to invest even more in spectacular runway shows and sprawling boutiques, all while multiplying estimated profits by a factor of seven. As Dior edges closer to overtaking its historic rival, Bernstein analyst Luca Solca dubbed it “a homegrown Chanel within LVMH.”

This case study examines how Dior became one of luxury fashion’s fastest-growing and most profitable businesses. The company overhauled its product offer and communications: extending a culture of couture craftsmanship and innovation which had long animated its theatrical runway collections, and applying them throughout its commercial lines to create a diversified menu of hit products. The company also raced into e-commerce, rapidly extending its reach beyond the shopping capitals where it operates stores, and rolled out immersive, spectacular flagships to serve as a destination for a broad range of brand devotees, from aspirational tourists to top-spending “VICs.” As the coronavirus hammered sales for most fashion companies, Dior leaned into its momentum by continuing to stage major marketing moments that engaged homebound consumers watching online and fuelled post-pandemic growth.

The strategy appears to be paying off: Dior has rapidly scaled from around €2.2 billion ($2.5 billion) in revenue in 2017 to €6.6 billion in 2021, according to estimates, with the strong growth putting it closer than ever to overtaking mega-brand rivals like Gucci, Hermès or even luxury titan Chanel. With an operating margin above 35 percent of sales, the brand is likely now the fourth most-profitable listed luxury fashion brand, after LVMH stablemate Louis Vuitton, Kering’s Gucci and Hermès.

ADVERTISEMENT

Click below to read the case study now.

Created exclusively for BoF Professional members, case studies explore the important challenges facing the industry today. Discover more case studies and reports from The Business of Fashion here .

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.

Robert Williams is Luxury Editor at the Business of Fashion. He is based in Paris and drives BoF’s coverage of the dynamic luxury fashion sector.

• Pietro Beccari
• Bernard Arnault
• Maria Grazia Chiuri
• LVMH Moët Hennessy - Louis Vuitton
• Christian Dior Couture
• Dior Beauty
• Collaboration

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

Analytical, Not Literal: Inside Nadège Vanhee’s Hermès Vision

By translating the French luxury house’s codes with a mix of rigour and rebellion, the designer has updated its vision of feminine elegance with a sportier, more body-conscious silhouette.

The BoF Podcast | Alessandro Michele: ‘There Is Always Mr. Valentino Somewhere With Me.’

Alessandro Michele sits down with Imran Amed to reflect on his evolution as a designer, his deep connection to Valentino’s heritage, and the importance of passion and obsession in achieving creative success.

Moncler CEO Strengthens Grip on Company With LVMH Deal

Remo Ruffini is tightening his control of the outerwear specialist after striking a deal with LVMH, which will take a stake in the Ruffini investment vehicle that is Moncler’s biggest shareholder.

Alessandro Michele’s Valentino Vision

After a historic turn at Gucci, Alessandro Michele’s next move was the subject of intense industry speculation. Now, the superstar creative director and BoF 500 member has returned to fashion with a new vision for the storied Roman couture house Valentino.

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

Our newsletters may include 3rd-party advertising, by subscribing you agree to the Terms and Conditions & Privacy Policy .

The Business of Fashion

Our products.

LVMH Moët Hennessy - Louis Vuitton: The Rise of Talentism

• Restricted Material for Instructors

This case shows 1) the strategic importance of talent management 2) the best practice of LVMH in this regard. It illustrates how LVMH extracts synergies across maisons (“houses”).

The case can be used to illustrate the concepts of "industry analysis" and "competitive advantage" especially as applied to analyzing drivers of differentiation strategy. It can be used as a part of core strategy sequence in MBA or EMBA programmes as well as in Executive Education.The key teaching point is that when well-managed, employee mobility within a business group is valuable for the internal benefits it provides (e.g., the transfer of best practices across the group) and its external positive effects (e.g., attracting the right talent). It thus gives firms a competitive advantage when pursuing a differentiation strategy in the luxury industry.

• Strategic talent management
• Luxury industry
• Business groups
• European Competitiveness Initiative
• European Competitiveness
• Best Practices

Frederic Godart

Andrew Shipilov

Nancy leung, recommended cases.

LVMH Moët Hennessy - Louis Vuitton: A Personal Career Destination

Reference 5996

Published 24 Feb 2014

Length 8 page(s)

Topic Strategy

Region Global

Industry Luxury Goods and Jewelry

Chalhoub Group: A Luxury Success Story in the Middle East

Reference 6290

Published 29 Mar 2017

Length 17 page(s)

Topic Leadership & Organisations

Region Middle-East

Industry Apparel and Fashion

ICI PLC (Companion case to Hanson Plc)

Reference 211

Published 01 Jan 1992

Length 25 page(s)

Region Europe

Recently Viewed

Board Process Simulation (A)

By   Stanislav Shekshnia

Birkenstock: Exit the Family. Enter a Professional CEO

By   Morten Bennedsen ,  Mark Stabile ,  Brian Henry

Rasurel: Reviving an Ageing Brand

By   Amitava Chattopadhyay ,  Séverine de Wulf

Information

• Author Services

Initiatives

You are accessing a machine-readable page. In order to be human-readable, please install an RSS reader.

All articles published by MDPI are made immediately available worldwide under an open access license. No special permission is required to reuse all or part of the article published by MDPI, including figures and tables. For articles published under an open access Creative Common CC BY license, any part of the article may be reused without permission provided that the original article is clearly cited. For more information, please refer to https://www.mdpi.com/openaccess .

Feature papers represent the most advanced research with significant potential for high impact in the field. A Feature Paper should be a substantial original Article that involves several techniques or approaches, provides an outlook for future research directions and describes possible research applications.

Feature papers are submitted upon individual invitation or recommendation by the scientific editors and must receive positive feedback from the reviewers.

Editor’s Choice articles are based on recommendations by the scientific editors of MDPI journals from around the world. Editors select a small number of articles recently published in the journal that they believe will be particularly interesting to readers, or important in the respective research area. The aim is to provide a snapshot of some of the most exciting work published in the various research areas of the journal.

Original Submission Date Received: .

• Active Journals
• Find a Journal
• Journal Proposal
• Proceedings Series
• For Authors
• For Reviewers
• For Editors
• For Librarians
• For Publishers
• For Societies
• For Conference Organizers
• Open Access Policy
• Institutional Open Access Program
• Special Issues Guidelines
• Editorial Process
• Research and Publication Ethics
• Article Processing Charges
• Testimonials
• Preprints.org
• SciProfiles
• Encyclopedia

Article Menu

• Subscribe SciFeed
• Recommended Articles
• Google Scholar
• on Google Scholar
• Table of Contents

Find support for a specific problem in the support section of our website.

Please let us know what you think of our products and services.

Visit our dedicated information section to learn more about MDPI.

JSmol Viewer

Entrepreneurs’ social capital in overcoming business challenges: case studies of seven greentech, climate tech and agritech startups.

1. Introduction

2. literature review, 2.1. challenges and opportunities for environmental entrepreneurship, 2.2. social capital as a catalyst for environmental entrepreneurship.

“ To be honest, it’s just a few twists and turns. Initially, we started looking for various materials that could be used in the worlds of semiconductor conductors, which would be more environmentally friendly and more interesting. ”

“ I didn’t have any specific goal (like) a startup in the world of bees. As we sat down and started working on what to do, everyone said what was important to them… It was very important to me to have a physical product, not just a concept. Everyone brought their expertise. And of course, I had a clear advantage in the world of bees. ”

“ They were three scientists with an exciting idea, but they didn’t know what to do with it. So, I entered with another Israeli partner, and we took care of the business side. ”

“ It was quite opportunistic. One of my partners got frustrated while stuck in traffic and was annoyed by the inefficiency. He started investigating the event and realized there was a significant issue here. Through mutual friends, I and another partner joined, and we saw that there was a world that hadn’t changed since 1914… This means there is a huge opportunity both to build a very large company and to create an impact on the world. It seemed cool to us. ”

Click here to enlarge figure

4.1. The Challenges of Environmental Ventures

4.1.1. long-term fundraising.

“ The most significant challenge is showing immediate revenues in the short term. You need to find partners who are committed to sustainability in the long term, understanding that it’s a lengthy process and that immediate income isn’t always visible. It’s always in the background, trying to find partners and raise funds. ”

“ For me, the most challenging part has always been fundraising… We put significant effort into developing our products and making them marketable. Due to the lack of investment, I had to bring in money from somewhere else… Tech companies are often cash-burning… I always said that my most valuable resource is time because I ran out of money. So, we were either going to skip the challenge or end the company, and we ‘made it through’ several times. But it’s dangerous because if you put all your money into something and it doesn’t work out, there’s no second chance… ”

4.1.2. Technical Difficulties

“ I think everyone who works with me in the company is looking for sincerity and energy that will lead to a significant impact, and that’s a big part of the motivation. Of course, there’s a desire to succeed financially and it’s not an NGO, part of the interest is to find the right value chain and reach a satisfying Value proposition. ”

“ In the company, there are routine challenges… From the inside, there are endless challenges, from global chip shortages to specific customer issues or recruiting for a specific role that takes longer than expected. ”

“ …the weather changes that greatly affect our production. The trees need certain conditions, and if they don’t get them, our production will be harmed. This decisively affects the yield in the end… ”

“ In general, we’ve been doing a lot of marketing activities for many years, especially until two years ago, and even now we’re actively educating the market. Essentially, we’re telling them that there’s a product that can replace plastic, and it’s just as good as plastic. That’s our message. ”

“ If a regulation supports our products, we seize the market. If it’s against us, we either reduce our activities or adjust them, focusing on different areas. ”

“ Regulation is crucial in many areas, and some changes can significantly affect a business, while others might have a smaller impact. It varies in different directions. Some regulations are more restrictive, while others enable opportunities. ”

“ …there are things that can affect you, like a sudden decision on importing something that you need to deal with promptly, see how the market reacts and how you cope with it to your advantage. See where the wind blows and try to be in the best position even after the change, to be the factor in the market that’s easiest to affect. ”

“ Then, during this development and after proving it in Area B, we slightly clashed with the go-to-market, which is very scattered regulatory-wise… When it comes to the place of hardware, software, regulation—you are aiming yourself for a very slow marathon process and you need to feel that the marathon is worth it. ”

“ Creating connections in the government in Australia, because it’s a country with a lot of regulation and small changes, can be impactful. Connections in the government are super significant in this country. ”

4.1.3. Traditional Industry Players

“ It (the product) mainly addresses very traditional industries. Factories, heavy manufacturing plants, the oil refining industry, concrete, fertilizer. These are very traditional industries, very rigid. In such a content world, there are fixed suppliers who are equipment suppliers… Technology is not enough—it’s good, it’s important and necessary, but it’s not enough. ”

“ The people we work with did not grow up around technology, and it’s not intuitively what they use as a solution. They see a problem and instead of solving it with technology, they’ll say—okay, let’s work harder. That’s how they operate. When I come to them with high-tech, machine learning, data science, and AI, it often scares them more than anything else. They don’t immediately jump on the idea, they are first suspicious, wanting to know that the government isn’t tracking them. It’s a different world that isn’t always open to technology, and you need to learn how to deal with it. You need to show value very quickly. ”

4.1.4. Pioneers in Their Fields

“ Unlike other fields where multiple companies are operating, we are currently the only ones in our field. There’s no competition, no experience, and no market. Therefore, there are no investors. ”

“ When we started, and it was a relatively new field, the main challenge was finding investors. When you invest in an existing ecosystem, for example, investing in apps or cybersecurity, there are established markets. You can say, “This company has been very successful; I’ll do something slightly different, so I’ll succeed.” There was no point of comparison; there was no benchmark. We were unique for many years. ”

“ We did come with a new business model, and more or less, most of the industry today knows the business model we use, and many have switched to using it. ”

4.2. Social Capital as an Answer to the Challenges Faced by Environmental Ventures

4.2.1. business opportunities.

“ In the context of investors, the lead investor of each round brought the lead investor for the next round. In the context of farmers, when a farmer is satisfied with me, he will tell his friends, other farmers, and thus I will have more customers—the same goes for other professionals that we work with. ”

“ No matter how good I am, as long as I don’t come with a player in the industry that is recognized and accepted by them, the ability to promote something and advance in business will be difficult. ”

“ Everyone who joins does so because they believe in what we’re doing and want to contribute. Most investors joined because they had a good gut feeling about it. This is unlike other fields where there are already companies operating… We operate in the sea, and there are no technologies there. Nothing new has been invented there since they created the boat. It’s not an ideal situation for fundraising. ”

“ My initial investment in my company came from an investor I had met a few times without any intention to raise funds. It was a WhatsApp message in the middle of the night. He wrote that they were transferring one and a half million dollars for investment. I hadn’t planned to raise funds at all, but he said I needed the money. I asked about the terms; he typed them out. I asked if they were fair, and he said yes. So, I told him to send the documents, and that’s it. ”

4.2.2. Knowledge and Expertise

“ For example, when it comes to production issues, and investment in development, I rely on various sources within my network. I’m not just relying on research and such. Sometimes we also want to reach a specific manufacturer or customer, and then we use our entire network. ”

“ For example, if I want to know who the early adopters in the industry are, I could get a list of phone numbers of all almond growers in California and contact them one by one. It would take a lot of time, and I might run out of money, and the company would die. On the other hand, I could start building certain connections and then use them to understand the early adopters and move forward from there—I think that’s the way to do things. ”

“ It’s all about the goal. If there’s a specific question relevant to someone’s expertise. If I have accounting doubts about recognizing income or the business model, then I have financial people I can turn to for these matters. It’s very dependent on the domain. For highly specific fields, like an optics expert or a plastics expert, and other niche cases, I would consult with them about these specific areas. ”

“ (having) Benchmarks is the main issue. The ability to receive specific advice in the face of a specific dilemma mainly saves time in decision-making based on a trust circle. The fact that I have a trust circle I can turn to, someone who has dealt with a similar issue, and I can take their advice and experience—it’s very helpful. ”

“ In my opinion, it’s incredibly diverse. I think that it’s my superpower. It’s not just about people working in a specific industry. ”

“ We work worldwide, so I have connections with people all over the world, not necessarily from a specific industry. Generally speaking, I work with people in the climate arena, but that’s a title that encompasses a lot of different things, and it’s not specific at all. ”

“ I sort of stumbled into it—it’s not that it particularly interested me, and I worked on it… I wanted to initiate something new… I opened my eyes to it. It all started with a kind of discussion I had with my children about plastic bottles they take to school and packaging, and I said to myself that today it’s a problem, more than 10 years ago, and it’s clear that it requires a solution that integrates better into our lives. ”

“ The three technical founders… one of them, the founder and the mind behind the idea, is … who is also incidentally my eldest brother… They were three scientists with an exciting idea, but they didn’t know what to do with it. So, I entered with another Israeli partner, and we took care of the business side. ”

“ One of my partners got frustrated while stuck in traffic… He started investigating the event and realized there was a significant issue here. Through mutual friends, I and another partner joined, and we saw … There was a huge opportunity both to build a very large company and to create an impact on the world. It seemed cool to us. ”

“ To be honest, it’s just a few twists and turns… In general, it was a curiosity to find environmentally friendly and more efficient materials. ”

“ I didn’t choose it. I chose a bit to the side… During the research … we realized that we need to focus on technology (that led to the environmental sector). ”

4.2.3. Expanding Social Capital

“ Environmental organizations aren’t included in my primary network, but there are people in our company who work in this field, and through them, I can reach them. ”

“ My acquaintance with people who served with me led to their willingness to try to open doors for me abroad with their networking. ”

“ In the context of investor worlds, the lead investor of each round brought the lead investor for the next round. In the context of farmers, when a farmer is satisfied with me, he will tell his friends, and other farmers, and thus I will have more customers. The same goes for beekeepers we work with. ”

“ There is a correlation. If it’s 100 percent, I don’t think so. It also depends on the industry. In the investment sector, the correlation is expected to be higher. In the customer and supplier sector, it’s less, but there’s still a certain correlation. Networking is important; things can work without networking, but in my opinion, it’s much harder. In the investment and fundraising sector, networking is necessary. You also build it. You also need to maintain it over time. ”

“ There’s no doubt that the correlation is positive, and there are many things that are hard to put your finger on and measure. It’s hard to measure the impact. Practically I see that today most people already know the name of the company. ”

“ I believe there is a correlation, but it’s challenging to measure. It’s more about the genuine belief that having a deeper and more serious network can lead to more significant benefits. Some succeed without a broad network, while others have extensive networks but still struggle. So, there is a connection, but it’s challenging to quantify. It’s very individual and not easily measured. ”

4.3. Sources of Social Capital

4.3.1. childhood.

“ We were five founders: three from the research side and two from the business side. one of the three technical founders and the mind behind the idea is my eldest brother. ”

“ I met one of the founders through a mutual childhood friend. She used to work with one of the partners, and today, she also works as a senior in the company. ”

4.3.2. Early Adulthood

“ Just as I finished the degree… a new program opened… I think the deans of each school had to recommend 2–3 students for this program. I was accepted. I started the program. The program had its better and lesser parts, but what’s important is that I met my co-founders there. ”

“ I met the other founders during my military service. These were people who worked alongside me, highly qualified individuals who were part of the ecosystem I grew up in during the service, and we had various interactions. One was in the development field, and the other in the operational field. ”

“ My network is relatively extensive, mainly. It first started with people who were with me in the military, who were discharged before me, and when I retired, they helped teach me, assist me, make connections, and integrate factors into the network. ”

4.3.3. Social Online Networks

“ Thanks to LinkedIn, the world has become very global, and many of the connections are not necessarily from Israel. There’s no doubt that the local network is very strong, enabling both joint activities in Israel and outreach to various active groups, be it funds investors, partners, etc. But as we grew, I would say that the professional network related to the industry developed significantly through LinkedIn. ”

“ The only social network I’m part of for professional purposes is LinkedIn. I think it’s a very effective tool for conveying messages to a targeted audience. I receive audiovisual messages from targeted audiences. It’s very fertile and productive. ”

“ I think in our world, conferences and events are crucial sources…and industry WhatsApp groups and forums like LinkedIn…LinkedIn, in my opinion, is a very efficient tool, as well as Twitter, especially when dealing with Americans. And again, conferences—we invest quite a bit in those. And of course, investor relations. For example, when we close a big deal, my interest is that the whole world knows about it, so LinkedIn and investor relations come into play. ”

4.3.4. Common Acquaintances

“ In the context of investor worlds—the lead investor of each round brought the lead investor for the next round. In the context of farmers—when a farmer is satisfied with me, he will tell his friends, other farmers, and thus I will have more customers. ”

“ Sometimes we also want to reach a specific manufacturer or customer, and then we use our entire network. ”

“ For example, one of the Chinese investors introduced us to the manufacturer we are currently working with, which has certainly helped us to enhance the manufacturing capabilities of the cells. One investor introduced another investor. So, each one brings their network, experience, and connections. ”

5. Discussion

5.1. practical and theoretical contributions, 5.2. practical recommendations, 5.2.1. recommendations for policymakers and funders, 5.2.2. recommendations for educators, 5.2.3. recommendations for entrepreneurs, 5.3. limitations and future directions, 5.4. conclusions, supplementary materials, author contributions, institutional review board statement, informed consent statement, data availability statement, conflicts of interest.

• Fuller, R.; Landrigan, P.J.; Balakrishnan, K.; Bathan, G.; Bose-O’Reilly, S.; Brauer, M.; Caravanos, J.; Chiles, T.; Cohen, A.; Corra, L.; et al. Pollution and health: A progress update. Lancet Planet. Health 2022 , 6 , e535–e547. [ Google Scholar ] [ CrossRef ] [ PubMed ]
• Alpizar, F.; Backhaus, T.; Decker, N.; Eilks, I.; Escobar-Pemberthy, N.; Fantke, P.; Ken, G.; Maria, I.; Olivier, J.; Hong-Seok, K.; et al. UN Environment Global Chemicals Outlook II-From Legacies to Innovative Solutions: Implementing the 2030 Agenda for Sustainable Development. 2019. Available online: https://www.unenvironment.org/explore-topics/chemicals-waste/what-we-do/policy-and-governance/global-chemicals-outlook (accessed on 20 February 2024).
• World Bank. Emissions Data are Sourced from Climate Watch Historical GHG Emissions (1990–2020). 2023. Available online: https://data.worldbank.org/indicator/EN.ATM.CO2E.PC (accessed on 20 February 2023).
• Hart, S.L. Innovation, creative destruction, and sustainability. Res.-Technol. Manag. 2005 , 48 , 21–27. [ Google Scholar ] [ CrossRef ]
• Szekely, F.; Strebel, H. Incremental, radical and game-changing: Strategic innovation for sustainability. Corp. Gov. 2013 , 13 , 467–481. [ Google Scholar ] [ CrossRef ]
• Shahid, M.S.; Hossain, M.; Shahid, S.; Anwar, T. Frugal innovation as a source of sustainable entrepreneurship to tackle social and environmental challenges. J. Clean. Prod. 2023 , 406 , 137050. [ Google Scholar ] [ CrossRef ]
• Onetti, A.; Zucchella, A.; Jones, M.V.; McDougall-Covin, P.P. Internationalization, innovation, and entrepreneurship: Business models for new technology-based firms. J. Manag. Gov. 2012 , 16 , 337–368. [ Google Scholar ] [ CrossRef ]
• Criscuolo, C.; Menon, C. Environmental policies and risk finance in the green sector: Cross-country evidence. Energy Policy 2015 , 83 , 38–56. [ Google Scholar ] [ CrossRef ]
• Hellström, T. Dimensions of environmentally sustainable innovation: The structure of eco-innovation concepts. Sustain. Dev. 2007 , 15 , 148–159. [ Google Scholar ] [ CrossRef ]
• Álvarez Jaramillo, J.; Zartha Sossa, J.W.; Orozco Mendoza, G.L. Barriers to sustainability for small and medium enterprises in the framework of sustainable development—Literature review. Bus. Strategy Environ. 2019 , 28 , 512–524. [ Google Scholar ] [ CrossRef ]
• Teberga, P.M.F.; Oliva, F.L. Identification, analysis and treatment of risks in the introduction of new technologies by start-ups. Benchmarking Int. J. 2018 , 25 , 1363–1381. [ Google Scholar ] [ CrossRef ]
• Randjelovic, J.; O’Rourke, A.R.; Orsato, R.J. The emergence of green venture capital. Bus. Strategy Environ. 2003 , 12 , 240–253. [ Google Scholar ] [ CrossRef ]
• Bocken, N.M. Sustainable venture capital—A catalyst for sustainable start-up success? J. Clean. Prod. 2015 , 108 , 647–658. [ Google Scholar ] [ CrossRef ]
• Johnson, M.P.; Schaltegger, S. Two decades of sustainability management tools for SMEs: How far have we come? J. Small Bus. Manag. 2016 , 54 , 481–505. [ Google Scholar ] [ CrossRef ]
• McKeever, E.; Anderson, A.; Jack, S. Entrepreneurship and mutuality: Social capital in processes and practices. Entrep. Reg. Dev. 2014 , 26 , 453–477. [ Google Scholar ] [ CrossRef ]
• Xie, G.H.; Wang, L.P.; Lee, B.F. Understanding the impact of social capital on entrepreneurship performance: The moderation effects of opportunity recognition and operational competency. Front. Psychol. 2021 , 12 , 687205. [ Google Scholar ] [ CrossRef ] [ PubMed ]
• Corvo, E.; De Caro, W. Social capital and social networks. Eur. J. Public Health 2019 , 29 (Suppl. S4), ckz186-093. [ Google Scholar ] [ CrossRef ]
• Nahapiet, J.; Ghoshal, S. Social capital, intellectual capital, and the organizational advantage. Acad. Manag. Rev. 1998 , 23 , 242–266. [ Google Scholar ] [ CrossRef ]
• Siisiainen, M. Two concepts of social capital: Bourdieu vs. Putnam. Int. J. Contemp. Sociol. 2003 , 40 , 183–204. [ Google Scholar ]
• Jedrych, E.; Klimek, D. The Methods of Measuring Social Capital in Enterprise. In Business, Economics and Science: Common Challenges ; Duda, J., Bernat, T., Eds.; Filodiritto Editor: Bologna, Italy, 2020; pp. 56–61. [ Google Scholar ]
• Crowley, F.; Barlow, P. Entrepreneurship and social capital: A multi-level analysis. Int. J. Entrep. Behav. Res. 2022 , 28 , 492–519. [ Google Scholar ] [ CrossRef ]
• Cai, W.; Gu, J.; Wu, J. How entrepreneurship education and social capital promote nascent entrepreneurial behaviours: The mediating roles of entrepreneurial passion and self-efficacy. Sustainability 2021 , 13 , 11158. [ Google Scholar ] [ CrossRef ]
• Xin, L.; Tang, F.; Zhang, S.; Pan, Z. Social capital and sustainable innovation in small businesses: Investigating the role of absorptive capacity, marketing capability and organizational learning. Sustainability 2020 , 12 , 3759. [ Google Scholar ] [ CrossRef ]
• Zimmer, J.C.; Henry, R.M. The role of social capital in selecting interpersonal information sources. J. Assoc. Inf. Sci. Technol. 2017 , 68 , 5–21. [ Google Scholar ] [ CrossRef ]
• Galindo-Pérez-de-Azpillaga, L.; Foronda-Robles, C.; García-López, A. The value of trust: An analysis of social capital in natural areas. Soc. Indic. Res. 2014 , 118 , 673–694. [ Google Scholar ] [ CrossRef ]
• Dhillon, J.K. The role of social capital in sustaining partnership. Br. Educ. Res. J. 2009 , 35 , 687–704. [ Google Scholar ] [ CrossRef ]
• Magnan, A.K.; Pörtner, H.O.; Duvat, V.K.; Garschagen, M.; Guinder, V.A.; Zommers, Z.; Hoegh-Guldberg, O.; Gattuso, J.P. Estimating the global risk of anthropogenic climate change. Nat. Clim. Chang. 2021 , 11 , 879–885. [ Google Scholar ] [ CrossRef ]
• Hansen, G.; Stone, D. Assessing the observed impact of anthropogenic climate change. Nat. Clim. Chang. 2016 , 6 , 532–537. [ Google Scholar ] [ CrossRef ]
• Parvez, S.M.; Jahan, F.; Brune, M.N.; Gorman, J.F.; Rahman, M.J.; Carpenter, D.; Islam, Z.; Rahman, M.; Aich, N.; Knibbs, L.D.; et al. Health consequences of exposure to e-waste: An updated systematic review. Lancet Planet. Health 2021 , 5 , e905–e920. [ Google Scholar ] [ CrossRef ]
• Malhi, Y.; Franklin, J.; Seddon, N.; Solan, M.; Turner, M.G.; Field, C.B.; Knowlton, N. Climate change and ecosystems: Threats, opportunities, and solutions. Philos. Trans. R. Soc. B 2020 , 375 , 20190104. [ Google Scholar ] [ CrossRef ]
• Dore, M.H. Climate change and changes in global precipitation patterns: What do we know? Environ. Int. 2005 , 31 , 1167–1181. [ Google Scholar ] [ CrossRef ]
• Hase, V.; Mahl, D.; Schäfer, M.S.; Keller, T.R. Climate change in news media across the globe: An automated analysis of issue attention and themes in climate change coverage in 10 countries (2006–2018). Glob. Environ. Chang. 2021 , 70 , 102353. [ Google Scholar ] [ CrossRef ]
• Hook, G.D.; Lester, L.; Ji, M.; Edney, K.; Pope, C.G.; Van der Does-Ishikawa, L. Environmental Pollution and the Media: Political Discourses of Risk and Responsibility in Australia, China and Japan ; Routledge: London, UK, 2017. [ Google Scholar ] [ CrossRef ]
• Schneider-Mayerson, M.; Gustafson, A.; Leiserowitz, A.; Goldberg, M.H.; Rosenthal, S.A.; Ballew, M. Environmental literature as persuasion: An experimental test of the effects of reading climate fiction. Environ. Commun. 2023 , 17 , 35–50. [ Google Scholar ] [ CrossRef ]
• Onyekuru, B.O.; Onyekuru, A.N.; Ihemezie, E.J.; Nwokorie, U.M.; Ukonu, M. Effectiveness of the Use of Movies in Climate Change Communication: Empirical Evidence from York, United Kingdom. Q. Rev. Film Video 2021 , 38 , 414–431. [ Google Scholar ] [ CrossRef ]
• Nachmany, M.; Fankhauser, S.; Setzer, J.; Averchenkova, A. Global Trends in Climate Change Legislation and Litigation: 2017 Update. A Report by the Grantham Research Institute on Climate Change and the Environment. 2017. Available online: https://eprints.lse.ac.uk/80447/1/Fankhauser_Global%20trends%20in%20climate%20change%20legislation_author_2017.pdf (accessed on 20 February 2024).
• Fekete, H.; Kuramochi, T.; Roelfsema, M.; den Elzen, M.; Forsell, N.; Höhne, N.; Luna, L.; Hans, F.; Sterl, S.; Olivier, J.; et al. A review of successful climate change mitigation policies in major emitting economies and the potential of global replication. Renew. Sustain. Energy Rev. 2021 , 137 , 110602. [ Google Scholar ] [ CrossRef ]
• Crecente, F.; Sarabia, M.; del Val, M.T. Climate change policy and entrepreneurial opportunities. Technol. Forecast. Soc. Chang. 2021 , 163 , 120446. [ Google Scholar ] [ CrossRef ]
• Cojoianu, T.F.; Clark, G.L.; Hoepner, A.G.; Veneri, P.; Wójcik, D. Entrepreneurs for a low carbon world: How environmental knowledge and policy shape the creation and financing of green start-ups. Res. Policy 2020 , 49 , 103988. [ Google Scholar ] [ CrossRef ]
• Bapoo, M.A.; Tehseen, S.; Haider, S.A.; Yusof, M.; Motaghi, H. Sustainability orientation and sustainable entrepreneurship intention: The mediating role of entrepreneurial opportunity recognition. Acad. Entrep. J. 2022 , 28 , 1–23. [ Google Scholar ]
• Dijkstra, H.; van Beukering, P.; Brouwer, R. In the business of dirty oceans: Overview of startups and entrepreneurs managing marine plastic. Mar. Pollut. Bull. 2021 , 162 , 111880. [ Google Scholar ] [ CrossRef ]
• Liu, Y.; Zhang, H. Driving Sustainable Innovation in New Ventures: A Study Based on the fsQCA Approach. Sustainability 2022 , 14 , 5738. [ Google Scholar ] [ CrossRef ]
• Walker, H.; Di Sisto, L.; McBain, D. Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. J. Purch. Supply Manag. 2008 , 14 , 69–85. [ Google Scholar ] [ CrossRef ]
• Romagnoli, S.; Tarabu’, C.; Maleki Vishkaei, B.; De Giovanni, P. The Impact of Digital Technologies and Sustainable Practices on Circular Supply Chain Management. Logistics 2023 , 7 , 1. [ Google Scholar ] [ CrossRef ]
• De Almeida Santos, D.; Luiz Gonçalves Quelhas, O.; Francisco Simões Gomes, C.; Perez Zotes, L.; Luiz Braga França, S.; Vinagre Pinto de Souza, G.; Amarante de Araújo, R.; da Silva Carvalho Santos, S. Proposal for a maturity model in sustainability in the supply chain. Sustainability 2020 , 12 , 9655. [ Google Scholar ] [ CrossRef ]
• Probst, B.; Touboul, S.; Glachant, M.; Dechezleprêtre, A. Global trends in the invention and diffusion of climate change mitigation technologies. Nat. Energy 2021 , 6 , 1077–1086. [ Google Scholar ] [ CrossRef ]
• Juma, C. Innovation and Its Enemies: Why People Resist New Technologies ; Oxford University Press: Oxford, UK, 2016. [ Google Scholar ] [ CrossRef ]
• Thakur, R.; Srivastava, M. Adoption readiness, personal innovativeness, perceived risk and usage intention across customer groups for mobile payment services in India. Internet Res. 2014 , 24 , 369–392. [ Google Scholar ] [ CrossRef ]
• Claudy, M.C.; Garcia, R.; O’Driscoll, A. Consumer resistance to innovation—A behavioral reasoning perspective. J. Acad. Mark. Sci. 2015 , 43 , 528–544. [ Google Scholar ] [ CrossRef ]
• Saavedra, R.H.; Smith, A.J. Analysis of benchmark characteristics and benchmark performance prediction. ACM Trans. Comput. Syst. (TOCS) 1996 , 14 , 344–384. [ Google Scholar ] [ CrossRef ]
• Söderholm, P. The green economy transition: The challenges of technological change for sustainability. Sustain. Earth 2020 , 3 , 6. [ Google Scholar ] [ CrossRef ]
• Rico, D.F. Practical metrics and models for return on investment. TickIT Int. 2005 , 7 , 10–16. [ Google Scholar ]
• Bourdieu, P. The Forms of Capital (1986). In Cultural Theory: An Anthology ; Wiley-Blackwell Publishing: Oxford, UK, 2010; Volume 1, p. 949. [ Google Scholar ]
• Coleman, J.S. Social capital in the creation of human capital. Am. J. Sociol. 1988 , 94 , S95–S120. [ Google Scholar ] [ CrossRef ]
• Bhandari, H.; Yasunobu, K. What is social capital? A comprehensive review of the concept. Asian J. Soc. Sci. 2009 , 37 , 480–510. [ Google Scholar ] [ CrossRef ]
• Çalışkan, A.; Ezilmez, B. A Theoretical Review on Social Capital. Hitit Ekon. Polit. Derg. 2021 , 1 , 18–30. [ Google Scholar ]
• Daskalopoulou, I.; Karakitsiou, A.; Thomakis, Z. Social Entrepreneurship and Social Capital: A Review of Impact Research. Sustainability 2023 , 15 , 4787. [ Google Scholar ] [ CrossRef ]
• Perry-Smith, J.E.; Shalley, C.E. The social side of creativity: A static and dynamic social network perspective. Acad. Manag. Rev. 2003 , 28 , 89–106. [ Google Scholar ] [ CrossRef ]
• Camps, S.; Marques, P. Exploring how social capital facilitates innovation: The role of innovation enablers. Technol. Forecast. Soc. Chang. 2014 , 88 , 325–348. [ Google Scholar ] [ CrossRef ]
• Villalonga-Olives, E.; Kawachi, I. The dark side of social capital: A systematic review of the negative health effects of social capital. Soc. Sci. Med. 2017 , 194 , 105–127. [ Google Scholar ] [ CrossRef ]
• Strindlund, L.; Abrandt Dahlgren, M.; Ståhl, C. When cooperation turns ugly: Exploring the dark side of social capital. Qual. Res. Organ. Manag. Int. J. 2022 , 17 , 1–18. [ Google Scholar ] [ CrossRef ]
• Baycan, T.; Öner, Ö. The dark side of social capital: A contextual perspective. Ann. Reg. Sci. 2023 , 70 , 779–798. [ Google Scholar ] [ CrossRef ]
• Claridge, T. Criticisms of social capital theory: And lessons for improving practice. Soc. Cap. Res. 2018 , 4 , 1–8. [ Google Scholar ]
• Adger, W.N. Social Capital and Climate Change ; Tyndall Centre for Climate Change Research: Norwich, UK, 2001. [ Google Scholar ]
• Ghodbane, A.; Alwehabie, A. Academic Entrepreneurial Support, Social Capital, and Green Entrepreneurial Intention: Does Psychological Capital Matter for Young Saudi Graduates? Sustainability 2023 , 15 , 11827. [ Google Scholar ] [ CrossRef ]
• Casson, M.; Giusta, M.D. Entrepreneurship and social capital: Analysing the impact of social networks on entrepreneurial activity from a rational action perspective. Int. Small Bus. J. 2007 , 25 , 220–244. [ Google Scholar ] [ CrossRef ]
• Rey-Garcia, M.; Mato-Santiso, V. Enhancing the effects of university education for sustainable development on social sustainability: The role of social capital and real-world learning. Int. J. Sustain. High. Educ. 2020 , 21 , 1451–1476. [ Google Scholar ] [ CrossRef ]
• Austin, Z.; Sutton, J. Qualitative research: Getting started. Can. J. Hosp. Pharm. 2014 , 67 , 436. [ Google Scholar ] [ CrossRef ]
• Yin, R.K. Applications of Case Study Research ; Sage: Los Angeles, CA, USA, 2011. [ Google Scholar ]
• Fassinger, R.; Morrow, S.L. Toward best practices in quantitative, qualitative, and mixed-method research: A social justice perspective. J. Soc. Action Couns. Psychol. 2013 , 5 , 69–83. [ Google Scholar ] [ CrossRef ]
• Barrett, D.; Twycross, A. Data collection in qualitative research. Evid.-Based Nurs. 2018 , 21 , 63–64. [ Google Scholar ] [ CrossRef ] [ PubMed ]
• Yin, R. Case Study Research: Design and Methods , 5th ed.; SAGE Publications: Los Angeles, CA, USA, 2013. [ Google Scholar ]
• Flyvbjerg, B. Five misunderstandings about case-study research. Qual. Inq. 2006 , 12 , 219–245. [ Google Scholar ] [ CrossRef ]
• Messabia, N.; Fomi, P.R.; Kooli, C. Managing restaurants during the COVID-19 crisis: Innovating to survive and prosper. J. Innov. Knowl. 2022 , 7 , 100234. [ Google Scholar ] [ CrossRef ]
• Öberg, C. The role of business networks for innovation. J. Innov. Knowl. 2019 , 4 , 124–128. [ Google Scholar ] [ CrossRef ]
• Taherdoost, H. How to conduct an effective interview; A guide to interview design in research study. Int. J. Acad. Res. Manag. 2022 , 11 , 39–51. [ Google Scholar ]
• Ruslin, R.; Mashuri, S.; Rasak, M.S.A.; Alhabsyi, F.; Syam, H. Semi-structured Interview: A methodological reflection on the development of a qualitative research instrument in educational studies. IOSR J. Res. Method Educ. 2022 , 12 , 22–29. [ Google Scholar ]
• Stam, W.; Arzlanian, S.; Elfring, T. Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. J. Bus. Ventur. 2014 , 29 , 152–173. [ Google Scholar ] [ CrossRef ]
• Grootaert, C. (Ed.) Measuring Social Capital: An Integrated Questionnaire (No. 18) ; World Bank Publications: Washington, DC, USA, 2004. [ Google Scholar ]
• Narayan, D.; Cassidy, M.F. A dimensional approach to measuring social capital: Development and validation of a social capital inventory. Curr. Sociol. 2001 , 49 , 59–102. [ Google Scholar ] [ CrossRef ]
• Fukuyama, F. Social capital and the global economy. Foreign Aff. 1995 , 74 , 89. [ Google Scholar ] [ CrossRef ]
• Ferri, P.J.; Deakins, D.; Whittam, G. The measurement of social capital in the entrepreneurial context. J. Enterprising Communities People Places Glob. Econ. 2009 , 3 , 138–151. [ Google Scholar ] [ CrossRef ]
• Dwivedi, Y.K.; Hughes, L.; Ismagilova, E.; Aarts, G.; Coombs, C.; Crick, T.; Duan, Y.; Dwivedi, R.; Edwards, J.; Eirug, A. Artificial Intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice, and policy. Int. J. Inf. Manag. 2021 , 57 , 101994. [ Google Scholar ] [ CrossRef ]
• Elyoseph, Z.; Gur, T.; Haber, Y.; Simon, T.; Angert, T.; Navon, Y.; Tal, A.; Asman, O. An ethical perspective on the democratization of mental health with generative artificial intelligence. JMIR Mental Health 2024 . preprint . [ Google Scholar ] [ CrossRef ]
• Garg, R.K.; Urs, V.L.; Agarwal, A.A.; Chaudhary, S.K.; Paliwal, V.; Kar, S.K. Exploring the role of ChatGPT in patient care (diagnosis and treatment) and medical research: A systematic review. Health Promot. Perspect. 2023 , 13 , 183. [ Google Scholar ] [ CrossRef ] [ PubMed ]
• Osterrieder, J.; Chat GPT. A Primer on Deep Reinforcement Learning for Finance. SSRN Electron. J. 2023 , 4316650. [ Google Scholar ] [ CrossRef ]
• Stokel-Walker, C. ChatGPT listed as author on research papers: Many scientists disapprove. Nature 2023 , 613 , 620–621. [ Google Scholar ] [ CrossRef ]
• Braun, V.; Clarke, V. Using thematic analysis in psychology. Qual. Res. Psychol. 2006 , 3 , 77–101. [ Google Scholar ] [ CrossRef ]
• Dawadi, S. Thematic analysis approach: A step by step guide for ELT research practitioners. J. NELTA 2020 , 25 , 62–71. [ Google Scholar ] [ CrossRef ]
• Mishchuk, H.; Bilan, Y.; Androniceanu, A.; Krol, V. Social capital: Evaluating its roles in competitiveness and ensuring human development. J. Compet. 2023 , 15 , 1–17. [ Google Scholar ] [ CrossRef ]
• Pylypenko, H.M.; Pylypenko, Y.I.; Dubiei, Y.V.; Solianyk, L.G.; Pazynich, Y.M.; Buketov, V.; Smoliński, A.; Magdziarczyk, M. Social capital as a factor of innovative development. J. Open Innov. Technol. Mark. Complex. 2023 , 9 , 100118. [ Google Scholar ] [ CrossRef ]
• Li, Y.; Chen, H.; Liu, Y.; Peng, M.W. Managerial ties, organizational learning, and opportunity capture: A social capital perspective. Asia Pac. J. Manag. 2014 , 31 , 271–291. [ Google Scholar ] [ CrossRef ]
• Ramos-Rodriguez, A.R.; Medina-Garrido, J.A.; Lorenzo-Gómez, J.D.; Ruiz-Navarro, J. What you know or who you know? The role of intellectual and social capital in opportunity recognition. Int. Small Bus. J. 2010 , 28 , 566–582. [ Google Scholar ] [ CrossRef ]
• Ozgen, E.; Baron, R.A. Social sources of information in opportunity recognition: Effects of mentors, industry networks, and professional forums. J. Bus. Ventur. 2007 , 22 , 174–192. [ Google Scholar ] [ CrossRef ]
• Foley, D. Does culture and social capital impact on the networking attributes of indigenous entrepreneurs? J. Enterprising Communities People Places Glob. Econ. 2008 , 2 , 204–224. [ Google Scholar ]
• Johnson, C.A. Choosing people: The role of social capital in information seeking behaviour. Inf. Res. Int. Electron. J. 2004 , 10 , n1. [ Google Scholar ]
• Cornwell, E.Y.; Cornwell, B. Access to expertise as a form of social capital: An examination of race-and class-based disparities in network ties to experts. Sociol. Perspect. 2008 , 51 , 853–876. [ Google Scholar ] [ CrossRef ]
• Baliamoune-Lutz, M. Trust-based social capital, institutions, and development. J. Socio-Econ. 2011 , 40 , 335–346. [ Google Scholar ] [ CrossRef ]
• Makhbul, Z.M.; Hasun, F.M. Entrepreneurial success: An exploratory study among entrepreneurs. Int. J. Bus. Manag. 2011 , 6 , 116. [ Google Scholar ] [ CrossRef ]
• Volker, B. Social capital across the life course: Accumulation, diminution, or segregation? Netw. Sci. 2020 , 8 , 313–332. [ Google Scholar ] [ CrossRef ]
• Kolstad, I.; Wiig, A. Is it both what you know and who you know? Human capital, social capital, and entrepreneurial success. J. Int. Dev. 2013 , 25 , 626–639. [ Google Scholar ] [ CrossRef ]
• Baron, R.A.; Markman, G.D. Beyond social capital: The role of entrepreneurs’ social competence in their financial success. J. Bus. Ventur. 2003 , 18 , 41–60. [ Google Scholar ] [ CrossRef ]

Share and Cite

Carni, M.; Gur, T.; Maaravi, Y. Entrepreneurs’ Social Capital in Overcoming Business Challenges: Case Studies of Seven Greentech, Climate Tech and Agritech Startups. Sustainability 2024 , 16 , 8371. https://doi.org/10.3390/su16198371

Carni M, Gur T, Maaravi Y. Entrepreneurs’ Social Capital in Overcoming Business Challenges: Case Studies of Seven Greentech, Climate Tech and Agritech Startups. Sustainability . 2024; 16(19):8371. https://doi.org/10.3390/su16198371

Carni, Michaela, Tamar Gur, and Yossi Maaravi. 2024. "Entrepreneurs’ Social Capital in Overcoming Business Challenges: Case Studies of Seven Greentech, Climate Tech and Agritech Startups" Sustainability 16, no. 19: 8371. https://doi.org/10.3390/su16198371

Article Metrics

Article access statistics, supplementary material.

ZIP-Document (ZIP, 22 KiB)

Further Information

Mdpi initiatives, follow mdpi.

Subscribe to receive issue release notifications and newsletters from MDPI journals