Horizontal Integration in Practice Purpose
As showcased at the beginning of this chapter, Signet Jewelers Limited (SIG) is successfully pursuing horizontal integration. This exercise gives you practice analyzing whether a firm should or could acquire a rival firm. Instructions Step 1 Review material about Signet at the beginning of this chapter and at the www.signetjewelers.com website. Review current news articles about Signet as posted on the www.finance.yahoo.com website. Step 2 Review information about a major rival to Signet, Tiffany & Co. (stock symbol TIF). Determine whether you believe Signet could or should try to acquire Tiffany. Give the pros and cons of such a horizontal integration strategy. Recall that Signet recently acquired rival Zale Corporation.