Question
The following discussion describes the sales growth and strategies of Samsonite. In 2013, Samsonite, a luggage producer, acquired two of its competitors, Hartmann and High
The following discussion describes the sales growth and strategies of Samsonite. 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 was planning to focus on developing its American Tourister line. The budget on advertising was to raise by at least 10 percent. It was 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 was expecting to double its business within the next five years. Discuss how the acquisitions, developing American Tourister, and advertising would enhance Samsonite's market power in the industry. Keep your answer short for each strategy.
Note: Samsonite's luggage was first introduced to the market in 1910. Although it has been sold at premium, it is famous among the older generations. However, since the number of brands has increased quickly in the past few decades, it may not be as well known among the younger generations as among those older ones. American Tourister is a younger brand and is more affordable.
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