CASE STUDY Essay
1) What is your assessment of the Danaher's diversification strategy? How does Danaher create value through diversification and mergers and acquisitions? What concerns do you have with their strategy?
3) What is your analysis of how Danaher manages diversification?
4) What is your assessment of Danaher's approach to post merger integration?
5) What can we learn from Danaher?
LVMH: Managing the Multi-Brand Conglomerate
1. What is your assessment of LVMH’s diversification? Does it make sense for the company to compete on a scope that includes champagne, jewelry, fashion, cosmetics, and retailing? How does it add value to its different businesses? Is …show more content…
Honda established an American subsidiary in 1959 American Honda Motor Company. This was in sharp contrast to other foreign producers who relied on distributors. Honda's marketing strategy was described in the 1963 annual report as "With its policy of selling, not primarily to confirmed motorcyclists but rather to members of the general public who had never before given a second thought to a motorcycle." Honda started its push in the U.S. market with the smallest, lightweight motorcycles. It had a three speed transmission, an automatic clutch, five horsepower (the American cycle only had two and a half), an electric starter and step through frame for female riders. And it was easier to handle. The Honda machines sold for under $250 in retail compared with $1,000 $1,500 for the bigger American or British machines. Even at that early date Honda was probably superior to other competitors in productivity.
By June 1960 Honda's Research and Development effort was staffed with 700 designers/engineers. This might be contrasted with 100 engineers/draftsmen employed by . . . [European and American competitors]. In 1962