2. The following discussion describes the sales growth and strategies of Samsonite.78 In 2013, Samsonite, a luggage producer, acquired two of its competitors, Hartmann and High Sierra.

Led by the growth of its sales in North America, its profit increased 18.6 percent to $176.1 million, while the sales of its younger brand American Tourister saw the fastest growth of 23.4 percent year on year. To ensure its success, Samsonite spent over $130 million on advertising to compete with other luggage producers.

In 2014, Samsonite will focus on developing its American Tourister line. The budget on advertising will be raised by at least 10 percent.

It is also planning to acquire one or two more brands. By following these strategies and due to the growth in the Chinese and Indian markets, Samsonite expects to double its business within the next five years.

Discuss how acquisitions, developing American Tourister, and advertising enhance Samsonite’s market power in the industry.