KLM Royal Dutch Airlines purchased controlling stock in Northwest Airlines to gainaccess to American and Asian markets
AMR, the parent company of American Airlines makes most of its money with theSABRE reservation system. It has spun off this technology to build systems for other firms in the travel/hospitality industry
Pernod Ricard, then the world's third largest wine and spirits producer, made another playfor a portfolio of leading international brands. It launched a friendly takeover bid of British rival Allied Domecq plc. in 2005, offering EUR 10.7 billion ($13.9 billion) for thecompany.
Addidas in 2005 buy reebok an American rival for $3.8 billion. This joining number twoand number three in the industry allowed it to challenge market leader NIKE. Addidaswas powerful in the market over suppliers and retailers. Reebok was stronger in US andAddidas was stronger in Europe so this was a good strategic fit.
The GAP Inc. retail clothing corporation is a good example of a business that practiceshorizontal integration. GAP Inc. controls three distinct companies,
, and the GAP brand itself. Each company has stores that market clothestailored to appeal the needs of a different group. Banana republic sells more expensiveclothes with a more "upscale", the GAP sells moderately priced clothes that appeal tomiddle-aged men and women, and Old Navy sells inexpensive clothes geared towardschildren and teenagers. By using these three different companies, GAP Inc. has been verysuccessful at controlling a large segment of the retail clothing industry.
Dell computers in Sears’s stores. The stores won't actually
merchandise. Rather,customers will be able to peruse Dell's offerings and then place their orders in the store.In a sense, this is just an extension of their mall-kiosk program.
Boise to Acquire OfficeMax for $1.154 Billion in Cash and Stock.The Acquisition of OfficeMax:
More than doubles the size of Boise Office Solutions, Boise's officeproducts distribution business, to pro forma 2002 sales of $8.3 billion.
By adding retail to its existing contract business, addresses allcustomer segments throughall distribution channels.
Provides a platform for growth in the small business segment.