Optimization of the Product Portfolio as a Factor of Increasing the Company's Competitiveness in Emerging Markets for Luxury Goods (the Case of LVMH)

The luxury goods market is one of the fastest-growing markets nowadays, despite different external and internal factors trying to hold back its growth. Such a phenomenon as oligopoly has been established in the market of luxury goods, which is now almost completely consolidated. It imposes some restrictions on both new producers and those, who are already working in the market. All companies need to modify and adapt their corporate strategies to constantly changing market trends and shifts to maintain their positions and increase their competitiveness under harsh conditions dictated by the market. One of such strategies is the product portfolio optimization. This thesis will study and analyze its impact on the company's competitiveness, based on the example of luxury conglomerate LVMH. Such analysis tools as BCG matrix and petal diagrams will be implemented in that matter to reflect the dynamics of the company's competitiveness depending upon its portfolio strategies and M&A strategies. Keywords: competitiveness, product portfolio, luxury goods market, LVMH, corporate strategy, BCG matrix, mergers and acquisitions