MERGERS, ACQUISITIONS AND CORPORATE RESTRUCTURING

A.Y 2022/2023

TEAM ASSIGNMENT: “THE GRUPPO FLORENCE CASE”

Group 5
APEKSHA ABRAHAM 2046888
HENA BASHLLARI 2051131
MAHTA NADAFIAN 2043828
MOHSEN NIKZADASK 2043869
ROMINA POURALIIRANJI 2046889
SAMAR SAMIEI 2043866

Prof. Antonio Zotti

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PAPER OUTLINE

I – About GRUPPO FLORENCE SPA

II – SWOT ANALYSIS & PORTER FIVE FORCES
III – THE INDUSTRY
IV – COMPETITIVE LANDSCAPE
V – STRATEGIC POSITIONING

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I – About GRUPPO FLORENCE SPA

Introduction, Products and Global Presence Of Gruppo Florence SPA:

Gruppo Florence SpA is a leading Italian luxury fashion company founded in 1972 in Florence, Italy.
The company is best known for its high-end fashion brands, including Ermanno Scervino, Roberto
Cavalli, and Philosophy di Lorenzo Serafini. Gruppo Florence SpA has established itself as a major player
in the luxury fashion industry and has a global presence with stores in Europe, the Middle East, Asia,
and the United States.

Gruppo Florence SpA is committed to the highest standards of quality and craftsmanship in its
products, which range from clothing and accessories to home decor and lifestyle items. The company
has a strong focus on sustainability and ethical practices, and it works closely with suppliers to ensure
that all materials are sourced responsibly and that workers are treated fairly.

Gruppo Florence SpA has received numerous awards and recognitions for its contributions to the
fashion industry, including the prestigious "Vogue Talents" award, which recognizes emerging talent in
the industry. With its commitment to innovation, quality, and sustainability, Gruppo Florence SpA is
poised to continue its growth and success in the global luxury fashion market.

Group Florence works with 24 companies:

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Gruppo Florence is an integrated Italian Platform comprised of companies that represent Italian
textile manufacturing excellence. The company offering a range of products and services related to
the luxuries leather goods and fashion accessories that designed and produced in Italy using high-
quality materials and artisanal techniques. It works closely with top luxury brands for the
development and production of prêt-à-porter, leather goods and footwear collections. Company
brings togethers 24 companies scattered across 12 Italian regions. The group collaborates with over
70 international brands and is specialized in these main luxury segments: ready-to-wear, footwear,
leather goods and intermediate processing.

Main Segments:

Ready to wear:

High quality clothing and leather products

Accessories

Intermediate Processing:

The intermediate processing unit helps our clients

elevate their products to new heights of
manufacturing and design.

Embroidered

Specialized textile processing solutions

Shoes

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II – SWOT ANALYSIS & PORTER FIVE FORCES

SWOT ANALYSIS

Strengths

-Established position and reputation within the luxury fashion industry

-Integration of companies across 12 Italian regions allows for customized solutions and quick
response to client needs
-Strong focus on sustainability and ethical practices
-Commitment to quality and innovation in textile production
-Wide range of services provided to clients, from design to production

Opportunities
-Expansion into new geographical markets, such as emerging markets in Asia and South America
-Growth in the demand for sustainable and ethically-produced luxury fashion products
-Development of new and innovative textile production techniques and materials
-Vertical integration into raw material production to mitigate supplier power

Weaknesses
-Dependence on the high-end fashion industry for clients and revenue
-Reliance on raw material suppliers, which can affect cost and availability
-Vulnerability to economic downturns, which can impact demand for luxury fashion products

Threats

-Intense competition within the luxury fashion industry

-Fluctuations in demand and consumer preferences for luxury fashion products
-Volatility in raw material prices and availability Changes in global trade policies and regulations
impacting international trade in textiles and luxury fashion products.

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PORTER’S FIVE FORCES:

Threat of New Entrants: The textile manufacturing industry is characterized by high fixed costs,
economies of scale, and intense competition. These factors create significant barriers to entry, making
it difficult for new players to enter the market. Gruppo Florence Spa's established position and
reputation within the industry further increase the barriers to entry, making the threat of new entrants
relatively low.

Bargaining Power of Suppliers: Gruppo Florence Spa's suppliers are primarily raw material suppliers,
such as cotton and silk producers. The bargaining power of these suppliers can be significant,
particularly in times of high demand or limited supply. However, Gruppo Florence Spa's size and
reputation give it some leverage in negotiations with suppliers. Additionally, the company may have
the option to vertically integrate and produce its own raw materials to mitigate supplier power.

Bargaining Power of Buyers: Gruppo Florence Spa's primary buyers are luxury fashion brands, which
have significant bargaining power. These buyers demand high-quality, innovative textiles at
competitive prices, and can easily switch to other textile manufacturers if Gruppo Florence Spa fails to
meet their expectations. However, Gruppo Florence Spa's reputation for quality and innovation, as
well as its relationships with these brands, may give it some bargaining power.

Threat of Substitutes: There are numerous substitutes for textile products, including synthetic
materials, leather, and fur. However, high-end fashion brands tend to prioritize the use of natural, high-
quality textiles, which limits the threat of substitutes for Gruppo Florence Spa. Additionally, the
company's focus on research and experimentation in textile production allows it to create unique and
innovative textiles that are difficult to substitute.

Competitive Rivalry: Gruppo Florence Spa faces significant competition from other textile
manufacturers, particularly in Italy and other European countries. However, the company's focus on
serving the high-end fashion industry, along with its reputation for quality and innovation, give it a
competitive advantage over many other players in the industry. Additionally, the company's integrated
production platform allows it to provide a wide range of services to its clients, including design,
development, and production.

In conclusion, Gruppo Florence Spa operates in a highly competitive industry, but its established
position, reputation, and focus on serving the high-end fashion industry give it a relatively strong
position within the industry. The company's integrated production platform, research and
experimentation capabilities, and relationships with luxury brands also provide some barriers to entry
for new players, further limiting the threat of new entrants.

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III – THE INDUSTRY

Gruppo Florence brings together 24 companies, with over 3,200 employees scattered across 12
Italian regions, producing more than 5 million garments, pairs and/or items per year. The Group
collaborates with over 70 international brands and is specialized in 4 main luxury segments: ready-to-
wear, footwear, leather goods and intermediate processing.

OPERATIONAL MODEL

Gruppo Florence represents a benchmark in the luxury sector, thanks to its experience and expertise
in the management of every stage of the product development and production process. Its
integrated strategy allows the Group to offer its clients customized solutions of the highest quality,
meeting their needs quickly and efficiently. With a keen focus on sustainability, the Group is a reliable
and invaluable partner for companies in the luxury sector.

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IV – COMPETITIVE LANDSCAPE

Competitive landscape

Gruppo Florence SpA has close competition with many companies which produce high-end jewelry,
watches, and accessories In the luxury goods industry. Some of the major competitors of Gruppo
Florence SpA are as follows:

1- Bulgari is an Italian luxury brand renowned for its production of jewelry, watches, and accessories
that have striking designs and feature valuable gemstones.

2-Cartier is a French luxury brand known for its production of high-end jewelry and watches,
recognized for their classic and timeless styles.

3-Van Cleef & Arpels is a French luxury brand that produces high-quality jewelry featuring intricate
designs and precious stones.

4-Tiffany & Co. is an American luxury brand that creates upscale jewelry that is recognized for its
famous blue box and diamond engagement rings.

All of the respective companies are in the luxury goods industry but they are from different
countries such as France, America, Switzerland and Italy.

Gruppo Florence SpA is competing with respective companies for market share and customer
loyalty.

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V – STRATEGIC POSITIONING

INORGANIC GROWTH
ACQUISTION OF NANIS ITALIAN JEWELS S.R.L

NANIS ITALIAN JEWELS S.R.L. is a private Italian company which is active in Manufacture of jewellery
and precious metal goldsmithery or coated with precious metals.

NANIS Italian Jewels S.R.L. is a company that embodies passion, beauty, and special individuals. The
company's founder, Laura, had a dream to revolutionize the jewelry industry by not only focusing on
aesthetics but also delving into the deeper essence of each piece. One of NANIS's earliest creations
was the iconic "Trasformista" bracelet, which could change shape with a simple touch, symbolizing
the company's belief that jewelry should adapt to women rather than the other way around.

As a well-established Italian jewelry brand, NANIS has gained recognition for its creativity and quality
in the industry. Their jewelry can be found in select retailers and boutiques worldwide.

WHY NANIS ITALIAN JEWELS S.R.L.?

WHAT THE TWO COMPANIES HAVE IN COMMON:

Same international presence

Same industry
Similar geographical coverage
Research capabilities
Same values and visions

SYNERGIES:
Acceleration of sales growth
Reciprocal transfer of know-how
Cost savings
Time savings
Product line expansion

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NANIS STAND ALONE

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NANIS POST ACQUISITION

GRUPPO FLORENCE STAND ALONE

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POST INTEGRATION

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REFERENCES

Nanis. (n.d.). La Storia [The History]. Retrieved from https://www.nanis.it/en/pages/la-storia

Gruppo Florence. (n.d.). Home. Retrieved from https://www.gruppoflorence.it/en/

https://login.bvdinfo.com/R1/Orbis

https://login.bvdinfo.com/R1/AidaNeo

Gruppo Florence. (n.d.). Pigolotti. Retrieved from https://pigolotti.gruppoflorence.it/en/

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