Acquisition of Tiffany by LVMH: Successful Market Expansion Strategy
DOI:
https://doi.org/10.54691/bcpbm.v37i.3601Keywords:
LVMH; Tiffany&Co.; successful acquisition; epidemic.Abstract
As a world-renowned luxury brand, LVMH announced a deal to acquire Tiffany & Co. on November 25, 2019. However, the luxury retail industry has been hit hard by the outbreak of the epidemic, and whether the acquisition deal can be successfully completed has become a concern. What is happening behind the deal and what are LVMH's plans after the acquisition of Tiffany & Co. This article provides a comprehensive analysis of the acquisition and future marketing plans, with a special focus on LVMH's divisional financial results, operating profit and sales figures. It also compares the geographic revenues and the overall benefits and profits that Tiffany & Co. brings to LVMH, as well as the impact of Covid-19 on both companies. After a series of negotiations, LVMH completed the acquisition on January 7, 2021. In the end, the acquisition of LVMH and Tiffany & Co. was a win-win for both companies, with Tiffany & Co. perfectly complementing LVMH's position in the jewelry industry.
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