QUESTION 4 'Toys 'R' Us pursued an aggressive horizontal acquisitions strategy in the early 2000,...
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QUESTION 4 'Toys 'R' Us pursued an aggressive horizontal acquisitions strategy in the early 2000, with the acquisition of several small online toy retailers in early spring, FAO Schwarz in May, and the bankrupt KB Toys in the Fall'.* *This statement is relevant for parts (a) and (b) below. (a) Explain the differences between 'acquisition' and 'merger'. (6 marks) (b) Firms use an acquisition strategy for many reasons. Discuss any THREE (3) major reasons for acquisition. (9 marks) (c) A product life cycle can be divided into several stages. As the product progresses through its life cycle, changes in the marketing mix are required in order to adjust to evolving challenges and opportunities. Explain marketing mix decisions for introduction and growth stage of product life cycle
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