The case study is about the acquisition of Bulgari by LVMH. It explores the high-end watch industry and describes the challenge that LVMH faces in it.
This acquisition presents several challenges such as whether it is worth the premium paid for Bulgari, whether Bulgari has the capability to compete in this sector, particularly, how Bulgari complements LVMH's corporate strategy aimed at improving its position in its watch division.
The case (A) is designed to stimulate debate on the concept of corporate strategy and offers an excellent opportunity to explore the complexity that the LVMH group can face when entering the industry of top-range watches.
This case study is ideally intended for Executive Education strategy courses. Alternatively, it could be a good case for MBA-level strategy courses, to discuss the concept of corporate strategy and its implications