Anthony Galioto BUS105 IA01

             On September 25, 2018, reports became public that Michael Kors was finalizing the acquisition of the European-luxury brand, Versace, for $2.1 billion. This news generated more backlash than it did support, as loyal customers voiced their own opinions on social media platforms. Versace, a high-end luxury brand, has a very respected reputation that is known across the world, whereas Michael Kors has found itself on the low end of American retail stores, like TJ Maxx and Marshalls. European consumers are afraid that the wide-scale approach of Michael Kors is going to diminish the respect of the brand. This was not only just a number of online complaints, after the news came out, the stock of Michael Kors immediately dropped 10% in value.
            Despite all of this backlash from passionate customers, Michael Kors has a vision in mind when purchasing a world-renowned brand in Versace. They are attempting to mirror Moet Hennessy Louis Vuitton (LVMH) who is an established leader in the market currently. They offer luxury products in a number of different industries, which had to be the main reason why the American company was willing to take the risk of purchasing Versace, who was barely profitable in 2017. Following the blueprint of LVMH, the joint companies will be renaming to Capri Holdings, inspired by three Italian islands, in hopes of creating a fresh start for the brands. Michael Kors took a big chance on a respected, but declining company, so only time will be able to tell if an American brand can establish itself with the European giants of the fashion world.  
            This scenario that played out related to the idea of management roles and acquisition of major companies. This also involves the theory of vertical and horizontal markets, and how attacking the industry in a certain way can make it more effective to become successful. When deciding on how to integrate into a market, few start from the ground up, whereas many will expand by reaching their arm over into another market to purchase an established company. This is exactly what Michael Kors did, they evaluated Versace and made a plan to become a larger brand than it was. Not every company can do this, however, as it takes in this case $2.1 billion to make this kind of purchase, which is why is it so rare for an acquisition like this to occur. The concepts of vertical and horizontal markets is evident through this current event. 
            Related to class, Drew’s compression short idea could eventually reach this level, should the product be as successful as he has said he intends. If he is able to put together all of the functions that it takes for a successful business to run, then there is the possibility of Nike, Under Armor, or Adidas eventually approaching Drew to either purchase the whole company, or the idea alone. This would be another acquisition, and is why large companies in the market are able to keep their foothold for a long time. The business world has a lot of moving parts, and for large-scale companies this method of integration into the market tends to be the most successful.
            In terms of planning for the upcoming deadlines for the next assignments, I am planning to have Elayna Burdelski, the accounting club president, to be my role model for IA2. She is a really good resource to have who I have already been communicating with. For IA3, I am already starting to plan how exactly I am going to approach the selling points that best express my personality, so I have started working on that now. For IA4, I have already gone to two networking events held on campus, so this one will not be a problem for me. I am starting to get used to talking to others, specifically professional business people, which I am really excited about. Finally, for IA5 I am most likely to reflect on Sandra Taylor’s lecture that she gave, as I was really intrigued with all that she had to say, as well as the elite background and experience that she has in the business field. Overall, I will be working on all assignments early to ensure that I have enough time to put everything I have to do in each post, and this should allow me to work comfortably which is very important. 

Michael Kors splurges on Versace. (2018, September 26). Retrieved from https://www.economist.com/business/2018/09/26/michael-kors-splurges-on-versace

https://www.economist.com/business/2018/09/26/michael-kors-splurges-on-versace

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