Fashion House (A) Case Study Solution

One of the leading German fashion brands – Fashion House with the history dating back to the 19th century is recognized as a market leader with the focus on expanding the distribution network and investing in modernizing the stores to yield the greater financial benefits. On account of the strong financial performance and driving the meaningful experience & benefits to discerning customers is what drives the uniqueness and innovation across the company.

The International Trading Company has purchased the Fashion House in the calendar year 2005. The International Trading Company was the product of the several acquisitions and mergers such as Fashion House. The International Trading Company has purchased the Fashion Company with the objective of expanding the department store as well as entire business specifically in the high price segments. Since, the Fashion House Company has significantly established the strong market position is the optimal fit for expanding the ITC’s fashion portfolio.

After the acquisition of the company, the company concerned about declining sales and the company has become no less than a mess. One of the factor contributed to the declining sales of the company was the significant influence of the parent company over the strategy and decision implemented by the Fashion House due to which the company has lost autonomy. The International Trading Company has effortlessly tries to create the synergies between the department stores of the ITC and the FH. In addition to this, the decision related to the purchasing and marketing were also centralized which in turn not only severely affected the product range offered by the company but also led to the headcount reduction and the internal reorganization………………………….

 

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