Loading

Analyse two reasons why a business such as The Pentland Group may have chosen to expand through takeovers.

Takeovers are when one business buys out another business and becomes responsible for its operations. Takeovers are beneficial due to their spreading of risk. The Pentland Group already owns many brands, such as Canterbury and Ellesse, therefore a takeover will allow them to spread their risks by diversification and having other businesses to focus on if one happens to fall short/goes out of business. Takeovers also save time and money in creating new brands or products, allowing The Pentland Group to focus on other business matters.
Another reason may be because takeovers eliminate competition. This is beneficial for The Pentland Group because they are a leisure brand, therefore they will have big competitors such as Nike and Adidas. The Pentland Group have already 'grown rapidly over the years' due to takeovers, demonstrating that this is a good way to expand. Acquiring another company means reducing the market by one competitor, giving The Pentland Group more market share and providing more brand awareness through having large corporate names under their belt.

A pair of laptops with a tutor displayed on one and a student on the other. The student is raising his hand to answer the teacher's question.
Need help with Business Studies?

Have a Free Video Meeting with one of our friendly tutors.

A pair of laptops with a tutor displayed on one and a student on the other. The student is raising his hand to answer the teacher's question.
Need help with Business Studies?

Have a Free Video Meeting with one of our friendly tutors.

A pair of laptops with a tutor displayed on one and a student on the other. The student is raising his hand to answer the teacher's question.
Need help with Business Studies?

Have a Free Video Meeting with one of our friendly tutors.