Mergers and Acquisitions as a Competitive Tool on the Modern Market of Luxury Goods

This paper is devoted to an important issue of mergers and acquisitions strategy on the luxury goods market and its effectiveness. Since the global economy is becoming more volatile and unpredictable, companies have to take over the smaller ones to eliminate risks of being acquired. In order to achieve a competitive advantage, global corporations need to constantly increase their market share, particularly on the luxury goods market, where three big conglomerates rule the competition. The paper itself sets the goal of estimating the role of mergers and acquisitions in marketing strategies of companies on the luxury goods market. By focusing on the trends and peculiarities of the luxury goods industry, this paper outlines main areas of implication of M&A instrument. Thus the takeover of Hermes failed, the assumed effectiveness of defence strategy is proved by proper analysis of concrete measures and calculation of synergetic effect.