Hermes International Company has some major issues that they need to solve as soon as
possible. Louis Vuitton is one of their issues. Understand how successful Hermes is, Louis Vuitton
try to “swallow” this company by buying more and more Hermes’s stake. From 2000 to 2010,
LVMH has since raised its stake to more than 22 percent, giving it 16 percent of the voting rights.
Hermes did not have any early action to prevent this issue to happen until 2011. Hermes decided to
sue Louis Vuitton about purchasing stakes which are not legitimate. This is not a smart move of
Hermes. First, Louis Vuitton is a big and experienced company who is smart enough to prove all of
their Hermes stakes are legitimate. Second, Hermes should not compete with a stronger and bigger
competitor alone. Hermes is only a family company with small size in both production and finance.
They should look for other strong competitor such as Gucci Corporate to create a partnership. This
way will help Hermes strong enough to protect themselves from Louis Vuitton’s bad intention