SUMMARY: Christian Lacroix, famed Parisian designer of haute couture, has seen change. Eleven chief executive officers could not manage Lacroix’s creativity to a profit. After 22 years in the fashion industry, Lacroix’s future is in doubt. His company, part of the Moet Hennessy Louis Vuitton S.A. conglomerate, filed for bankruptcy protection in May. Whether a buyer will emerge or not, one thing is certain – the “business as usual” mentality must go.

QUESTIONS:

1. How well did LVMH (Moet Hennessy Louis Vuitton S.A.) handle the strategic management of Christian Lacroix?
2. Identify the grand or master strategy employed by Christian Lacroix. How might this be a problem in the fashion industry?
3. Assume the company will emerge from bankruptcy. What strategic changes would you make if you were running this company? Why?

SOURCE: M. Colchester, “The Fall of Christian Lacroix,” Wall Street Journal (Retrieval online at http://online.wsj.com/article/SB10001424052970204619004574318400611353392.html)