Thursday, February 28, 2019
Acquiring a jewelry company
Nowadays, the trend in companies establishing strategic alliances has become more app bent as comp ard to the trend in 1980s and 1990s.Companies have viewed that diversity in the global market has been increase rapidly and such formation of alliances may help them achieve a fast and a long-term profitable growth for their businesses. The establishment of strategic alliances is a technique of expansion and diversification, accomplished through the strategic writ of execution of merger and of acquisition.Merger and acquisition atomic number 18 two different terms that are frequently interchanged because the purposes in determining these two strategic implementations are often very similar. These two methods start with the acquisition outline where a party attempts to find an appropriate company to merge with.Accordingly, a merger occurs as two companies agree to stand as a new atomic number 53 company where the original identity is maintained. On the other hand, acquisition occu rs as a company acquires and takes over another(prenominal) company to venture into a new separate business.Most companies who specify to merge with or acquire another company have the goal of ensuring stability and growth of their businesses in the future. However, all(prenominal) company likewise has distinctive goals that relate to their business.A company may decide to merge or acquire to save its collapsing business, to operate with reduced competition, or to diversify its services or products. In the process of merging and acquiring, these goals of the companies are coupled with advantages and potential disadvantages as rise.This paper aims to discuss the potential benefits that Zale fellowship will obtain as it pursues its plan of merging with or acquiring Blue Nile, Inc. In addition, this paper aims to analyze each of the company by providing a company backgrounder and a comparative financial statement analysis, which includes fluidness analysis, activity analysis, pr ofitability analysis, and capital structure analysis.Furthermore, this paper aims to provide a company valuation of Blue Nile, Inc. as well as cultivation on mergers and acquisitions that Zale companionship need to consider prior to pursuing its plans.COMPANY BACKGROUNDERA. Zale CorporationZale Corporation is one of the largest durability retailers of fine jewellery. Morris Zale, Ben Lipshy, and William Zale founded the company in 1924. It is now direct 2,203 retail locations throughout the United States, Puerto Rico, and Canada. More so, Zale Corporation has established several(prenominal) different business units. These includeZales JewelersZales Jewelers, also known as the rhombus Store, is recognized disciplinely as an authority in fine jewels. It has bountiful into an international jewelry corporation relying on its commitment to excellence as well as its strong traditions. The focus of Zales Jewelers is to provide a effigy of choices for the majority of jewelry cust omers. Apart from fine jewelry, it also offers brand-name watches, which provides customers a commixture of merchandise at a scope of price points.Zales OutletThe stores of Zales Outlet are tied-up with the national marketing programs of Zales Jewelers. Thus, it has gained recognition with customers. It competes with well-known retailers however, it tops the fine jewelers of the offspring market. Zales Outlet offers a diversified range of merchandise including certified diamond engagement rings, colored gemstones, platinum jewelries, and Swiss watches from famous makers. It has established a loyal customer keister that specifically adjudicates for tremendous value of lay off styles.Gordons JewelersThe target market of Gordons Jewelers is the upper moderate customers who seek a complete selection of diamonds and fine jewelry. Gordons Jewelers has created an expert gross revenue team that offers a rare combination of value, service, and quality to its customers. Its marketing str ategy includes direct mail and newspaper inserts and regional television features. The stores of Gordons Jewelers are designed in an appealing environment with friendly sales staff.Peoples JewelersPeoples Jewelers is the largest national jewelry retailer in Canada. Its focus is to provide a alter selection of fine jewelry and brand-name watches at affordable prices. Peoples Jewelers has developed its pocket 100-facet Peoples Canadian Diamond Collection, which is mined, cut, and polished in the Northwest Territories. It ensures its customers that the hottest trends in jewelries including titanium, untarnished steel, gemstones in all colors, gold fashions, circle pendants, and cultured pearls are offered in its stores.Mappins JewelersMappins Jewelers also caters to customers in Canada who seek classic fine jewelry and watches. Mappins offers a varied range of merchandise from engagement rings to modern and coeval jewelry. The marketing programs of Mappins establish strong commitme nt to excellence as well as strong traditions. Its television campaigns aim to carry out gift-giving programs duration its direct mail campaigns aim to provide special values and strong communication with customers. astute PagodaPiercing Pagoda started from a single retail location to chains of kiosks. It is the largest specialty kiosk retailer of extensive selection of gold charms, rings, body jewelry, bracelets, earrings, chains. It also offers stainless and silver jewelry.Piercing Pagoda was acquired by Zale Corporation in 2000 to broader the range of customers specifically in the younger customer category.Zale Corporation believes that this market appreciates quality jewelry at level price points. In return, the acquisition of Piercing Pagoda has open up the opportunity to capitalize on the resources of Zale Corporation and modernize the look of Piercing Pagoda in order to provide its customers with more desirable products.ZLC DirectZLC Direct is the online base of the brands of Zale Corporation, which provides e-commerce web stores for both Zales and Gordons Jewelers. It provides direct access to customers who prefer to purchase quality merchandise on the Internet. The quality and service found in the stores of Zale Corporation is also exhibited in the sites of ZLC Direct as it also offers value, excitement, and stratagem for online shoppers of today.Zale Corporation has established its mission of being the best fine jewelry retailer in North America. Its goal is to innovate and market unique jewelry assortments as well as to offer superior customer experience. Zale Corporation is committed to establishing strong and lasting relationships with its customers and at the same clock time build value for its shareholders. It assures its talented workforce of continues success through trainings and rewards as well as permanency of jobs.