1. Why did Tiffany become a takeover target? 2. Acquisitions are one tool to execute corporate strategy....
Question:
1. Why did Tiffany become a takeover target?
2. Acquisitions are one tool to execute corporate strategy. Why did LVMH acquire Tiffany? In your answer, focus on product and geographic diversification.
3. How is LVMH attempting to unlock value at Tiffany?
4. Do you believe that LVMH will be successful with its new strategy for Tiffany? Why or why not? Be specific.
5. Who do you think should be Tiffany’s target audience? What should Tiffany be selling to them?
6. Conglomerates often experience a diversification discount. LVMH is already the largest luxury conglomerate in the world, more than double the size of the following two conglomerates combined (Kering and Richemond). Do you think LVMH will experience a diversification discount? Is there a limit to conglomerate size? Or is bigger always better?
Step by Step Answer:
1 According to the case Tiffanys reputation had been fading away as the company stopped innovating and changing their iconic brand and product lines The Tiffany brand was associated with an older gene...View the full answer
