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Significant new challenges for the combined firm

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Reference no: EM132106642

Gucci's Acquisition of YSL, I not understanding the disadvantages of the Gucci's movement towards that. Please help me understand why it would be not good for a company according to management or strategy wise.

In 1999, Gucci acquired YSL for $1 billion. What are the synergies that can be realized from this deal (e.g. economies of scale, scope, etc.)? Are there any diseconomies, such as negative synergies or significant new challenges for the combined firm?

i. Economies:

ii. Diseconomies:

Reference no: EM132106642

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