On September 25th, the American brand Micheal Kors announced that they would be buying the Versace brand for two billion dollars. Micheal Kors is planning to purchase Versace in an attempt to compete with luxury European companies, like LVMH and Kering. The company also plans to change the name from Micheal Kors to Capri Holdings. The name is inspired by the Italian island and the three towering rocks off of its coast, and the rocks are meant to represent the three brands that make up the company, Micheal Kors, Versace, and Jimmy Choo.
There are other American brands that are making efforts to compete with luxury conglomerates. The brand formerly known as Coach purchased the brands Kate Spade and Stuart Weitzman. Coach also changed their companies name in an attempt to reinvent themselves. They are now known as Tapestry.
Micheal Kors and Coach purchasing these other companies are examples of acquisitions. As we discussed in class, an acquisition is the purchase of one company by another with no new company being formed. This is not to be confused with a merger, which occurs when two companies combine to form a new company.
For individual assignment #2, I plan to find someone in the Chatham Marketing Association who I feel would be a good role model. For individual assignment #3, I plan to view myself as the CEO of The Sierra Company. I will create my business plan as if I was presenting myself to enter into the professional marketing community. I have already attended an event that I can write about for individual assignment #4. I went to the Accounting and MIS Mixer. As of now, I plan to write about Sandra Taylor for individual assignment #5, and as long as I don't find more interest in another guest lecturer, she is who I plan to write about.
