similar between brands. The power of supplier will be a threat for new entrant but not strong
rivalries like Hermes or Gucci. Heng Long company is “one of the five largest croc-skin tanneries in
the world” (Karen Tee, 2012). Louis Vuitton now purchased enough shares of this company to have
strong power to control this important supplier and make it to become their advantages. The power
of this supplier is now longer a threat to Louis Vuitton. Hermes also found their ways to reduce
supplier’s power. They built their own crocodile farm and become supplier for themselves. Due to
these facts, the power of supplier in luxury industry is from moderate to low. Luxury industry clearly
is an attractive one.