Samsonite Strategic Media Analysis

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Strategic Media Analysis
News: Samsonite to buy High Sierra assets for $110 million
Source: Bloomberg / Dated: 2012-07-17
This summary is about an acquisition activity conducted by the Samsonite International S.A. to High Sierra Sport Company for US$110 million on 18-July-2012. The two company’s background and the luggage industry and market trend will be stressed. Also, the purpose, strategy and the benefit of the acquisition and recommendation will be discussed in both theoretically and practically. Samsonite International S.A. is the world’s largest travel luggage company founded by Jesse Shwayder in 1910 in Denver, Colorado. Samsonite acts as a designer, manufacturer, distributor and marketer of luggage, bags and travel accessories. The company aimed at being a market-leading position by their scale, advertising and product innovation, strong sourcing and distribution ability and high quality products. According to Tim Parker, CEO of Samsonite, they will acquire more new international brands to expand their luggage market this year. High Sierra Sport Company is established in 1978, a U.S. based manufacturer and distributor with products targeted to skiers and snowboarders and lifestyle consumers.

The luggage consumption is highly related to the travel industry. In 2009, the demand of luggage dropped significantly due to the economic downturn. The global luggage industry is currently under strong competition. The U.S. is the largest global luggage market; however, the Asia-Pacific market is expected to have a great potential growth.

Samsonite acquire High Sierra is to segment and explore their younger demographic business to gain better access to sporting goods retailers. This strengthened their brand and product offering immediately in the North American causal bag market and doubles the size of the region’s luggage market. Besides, they can establish a brand extension, broaden product base, global distribution, sporting goods retail network and...
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