Growth strategies of two large companies in the luxury goods sector

Abstract

This article aims to identify and analyze the growth strategies of companies that make up the so-called luxury industry and observe the formation of international conglomerates operating strategies aligned to the standard of competition in this industry. For this we made a literature
review and analysis of published material on the specific industry of luxury, and a survey of data on two international luxury conglomerates, LVMH and PPR. It was found that the strategies that have supported the growth of those companies were diversifying activities through mergers and acquisitions, coupled with product differentiation based on attributes
such as high product quality and brand distinction.