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2. The US apparel company VF is buying the fashion brand Supreme for $2.1 billion. Supreme's current investors, The Carlyle Group and Goode Partners, are selling their stakes, VF said. The New York City-based Supreme has worked with VF in the past, and it has collaborated with the VF-owned brands Vans, The North Face, and Timberland. The companies expect the deal to be completed in late 2020. VF expects Supreme to contribute at least $500 million of revenue in the 2022 fiscal year, it said. It would make an additional payment of up to $300 million, subject to certain milestones being met after the deal, it said. Supreme and VF already have similar customer bases, VF said in a press release. The deal also means the streetwear brand Supreme can access VF's global supply chain, international platforms, digital functions, and consumer knowledge, it said. Explain and give relevant examples of strategies of forward integration, backward integration, and horizontal integration for a company like VF. Identify which strategy was used by VF when it bought Supreme. Explain your answer.

2. The US apparel company VF is buying the fashion brand Supreme for $2.1 billion. Supreme's current investors, The Carlyle Group and Goode Partners, are selling their stakes, VF said. The New York City-based Supreme has worked with VF in the past, and it has collaborated with the VF-owned brands Vans, The North Face, and Timberland. The companies expect the deal to be completed in late 2020. VF expects Supreme to contribute at least $500 million of revenue in the 2022 fiscal year, it said. It would make an additional payment of up to $300 million, subject to certain milestones being met after the deal, it said. Supreme and VF already have similar customer bases, VF said in a press release. The deal also means the streetwear brand Supreme can access VF's global supply chain, international platforms, digital functions, and consumer knowledge, it said. Explain and give relevant examples of strategies of forward integration, backward integration, and horizontal integration for a company like VF. Identify which strategy was used by VF when it bought Supreme. Explain your answer.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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2. The US apparel company VF is buying the fashion brand Supreme for $2.1 billion. Supreme's current investors, The Carlyle Group and Goode Partners, are selling their stakes, VF said. The New York City-based Supreme has worked with VF in the past, and it has collaborated with the VF-owned brands Vans, The North Face, and Timberland. The companies expect the deal to be completed in late 2020. VF expects Supreme to contribute at least $500 million of revenue in the 2022 fiscal year, it said. It would make an additional payment of up to $300 million, subject to certain milestones being met after the deal, it said. Supreme and VF already have similar customer bases, VF said in a press release. The deal also means the streetwear brand Supreme can access VF's global supply chain, international platforms, digital functions, and consumer knowledge, it said. Explain and give relevant examples of strategies of forward integration, backward integration, and horizontal integration for a company like VF. Identify which strategy was used by VF when it bought Supreme. Explain your answer.
Transcribed Image Text:2. The US apparel company VF is buying the fashion brand Supreme for $2.1 billion. Supreme's current investors, The Carlyle Group and Goode Partners, are selling their stakes, VF said. The New York City-based Supreme has worked with VF in the past, and it has collaborated with the VF-owned brands Vans, The North Face, and Timberland. The companies expect the deal to be completed in late 2020. VF expects Supreme to contribute at least $500 million of revenue in the 2022 fiscal year, it said. It would make an additional payment of up to $300 million, subject to certain milestones being met after the deal, it said. Supreme and VF already have similar customer bases, VF said in a press release. The deal also means the streetwear brand Supreme can access VF's global supply chain, international platforms, digital functions, and consumer knowledge, it said. Explain and give relevant examples of strategies of forward integration, backward integration, and horizontal integration for a company like VF. Identify which strategy was used by VF when it bought Supreme. Explain your answer.
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