Synergy. Market expansion. Gaining share. Cost savings. Diversification. Talent acquisition. Owning a unique asset. Moving into a high-growth sector. These and many more reasons have often propelled companies into one another’s arms, regardless of the generally dismal track record such combinations reveal.
DKS had a clear business model, but now it’s introduced another dependent on a weak mall segment. Plus DKS probably would’ve taken share from FL over time anyway, so why pay a premium for it?
DKS, with no sales outside the US, also has no expertise managing an expansive international retail network.
It indeed seems like a strategic mistake.
DKS had a clear business model, but now it’s introduced another dependent on a weak mall segment. Plus DKS probably would’ve taken share from FL over time anyway, so why pay a premium for it?
DKS, with no sales outside the US, also has no expertise managing an expansive international retail network.
Generally spells trouble.
One word: ego.
Ouch!