Applied Corporate Strategy: Analysis of VF Corporation's Acquisition of Supreme Brand

Applied Corporate Strategy
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
External analysis..............................................................................................................................3
Internal analysis of VF corporation.............................................................................................6
Strategy Evaluation....................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
This report is mainly focused on the VF corporation acquire supreme brand in $2 billion and
enhance their business global world. VF corporation has been sealed its deals to acquire
supreme, privately owned street wear. Usually, this company was focused on the transaction
process but supreme has become owned subsidiary of V.F. the brand is mostly sells various kind
of products such as apparel. Accessories, footwear through online platform. With acquisition,
company is likely to implement speed up strategy because its aim to achieve business model and
completely change customer minded and retail centric business within hyper digital manner.
VF Corporation is based on the American world-wide apparel, foot-wear company and also
established in 1899 and its headquartered in Denver. The company has 13 brand and organised
into different manner. in 1899, John Barbey and group of investors are established the company
as glove and mitten manufacturing enterprise.
In this report, it will be analysed the pestle and porter’s five forces model to identify external
performance of organisation. Moreover, it will describe about the internal analysis and find all
essential resources through value chain analysis. at last, it will be evaluating the strategic
approach through TOWs.
External analysis
Pestle analysis
Political factor- in this factor, The Apparel Accessories industry can be examined the
significant impact of political instability in long term business enhancement. Usually, this
company was operated in context of apparel clothing, which has more than large number of
countries. But at certain point (Agnihotri and Bhattacharya, 2021). It will be increased the
political system risk which is creating a political environment within organization at the time of
merger & acquisition. The industry is closely analysed before acquisition of supreme brand. It
including risk of political instability in apparel clothing, increase demand of regulation. These
are different elements which is directly affecting on the The Apparel Accessories industry in
marketplace.
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Economic Factor - in this factor, it is mainly focused on the inflation rate, saving rate and
interest rate. These are directly affecting on the The Apparel Accessories brand when it acquire
Supreme brand. This is why because of increasing the foreign exchange rate. It is difficult to
determine aggregate demand & investment in an economy. In most of cases, The industry
should be consider competition norms which is directly impact on the competitive advantage. If
in case, enterprise will try to acquire Supreme brand and also paying high growth rate. Therefore,
large number of consumers are spending time and showing an interest.
Social Factor- this type of factor is influencing the The Apparel Accessories industry
because society culture and way of doing things impact on the culture of enterprise. Many people
can beliefs and attitude of large population which plays a great role in marketplace. The Apparel
Accessories industry has already understand the need of consumers in given market and manage
their textile business in global world (Bennur and Malhotra, 2020). Company is always focused
on the specific demand of consumers and always change their clothing trends according to
interest of client. That’s why, it will inspire or motivate more consumers where they can
purchase items.
Technological Factor- Nowadays, it has been rapidly increasingly demand of advanced
technology. After acquisition of Supreme brand by VF corporation . It will be implementing
automation technology in their business. In this way, it will easily handle business operation and
function in proper manner. Moreover, it is also increasing the speed of task execution. Therefore,
large number of potential consumers are attracted towards product as well as service. In this way,
it has concluded that technology factor impact on The Apparel Accessories industry in growth
and development. In some situation, The Apparel Accessories industry can do analysis of
industry but it also understand the current speed at which technology disrupts.
Environment Factor- In this factor, The Apparel Accessories industry have been
considered the different norms, standards which can impact on the profitability of organization.
Even with nation, it often that increase demand of environment law and liability. VF corporation
acquire Supreme brand and also implemented as environmental legislation. This will help to
reduce pollution rate in global world. The Apparel Accessories industry will always try to
protect or secure environment through effective environmental policies, standards.
Legal factor- this factor is related to legal framework and institution which are not robust
or enough to protect or secure intellectual property rights of organization. The Apparel
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