Why some Companies take risk to purchase retailers?

Luxottica is a little-known Italian company specializing in eye wear. Its many brands, however, are famous: Giorgio armani, Channel, Yves st. Laurent, Ray-Ban, and a host of others. Luxottica is the world's largest maker of branded eye wear and is highly profitable. This producer also owns the world's largest optical chain, Lenscrafters, a U.S. firm, which it bought in 1995 from U.S. shoe, a company eager to recoup its capital and reclaim its management attention from a highly competitive businesses. At the time, Lenscrafters was bigger than Luxottica's brands have enormous power: Why take such a risk to purchase a retailer when there are plenty of other ways to take these brands to market? what is the reason to vertically integrate forward?

3 years ago - 1 answers