takeover

Question 1

define takeover

Answer 1

involves one business acqiring control of another business

Question 2

point 1

Answer 2

enter new segement of the same market
- a new subst of the skincare market
- unilver can defend itself against other skin care brands who use natural ingredients
- eliminate competition as unilever has the competitive advantage as its a well known brand

Question 3

counterbalance cost

Answer 3

cost of takeover 500m
- high cost
- potential the trade-off many not pay off
- unliver encountering unforeseen costs they may not be able to pay

Question 4

point 2 market share

Answer 4

• increasde market share
• dermalogica has great distribution and presence globally
• unliver gaining more brand awareness as dermalogica is established and customer base
• sell to wider target audience
• increase sales from 37% to 60%

Question 5

counterbalance market share

Answer 5

• dermalogica may not be seen as a prestigious brand
• unlilever more mass market

Question 6

conclusion

Answer 6

• exploit eos
• only benefit from takeover if dermalogical business culture remains the same
• may reduce costs if adapts their structure