Acquiring a jewelry company

Nowadays, the cut down in companies establishing strategic alliances has become much apparent as compared to the trend in 1980s and 1990s.Companies have viewed that diversity in the global commercialise has been increasing rapidly and such(prenominal) formation of alliances may help them achieve a fast and a long-term profitable increase for their businesses. The establishment of strategic alliances is a technique of expansion and diversification, accomplished through the strategic implementation of uniting and of accomplishment.Merger and acquisition are deuce different terms that are often interchanged because the purposes in determining these two strategic implementations are often very similar. These two methods start with the acquisition strategy where a keep company attempts to find an appropriate company to merge with.Accordingly, a merger occurs as two companies agree to rack as a new single company where the original identity is maintained. On the other hand, acquis ition occurs as a company obtains and takes over another company to venture into a new recess business.Most companies who decide to merge with or acquire another company have the goal of ensuring stability and yield of their businesses in the future. However, every company in like manner has distinctive goals that relate to their business.A company may decide to merge or acquire to save its collapsing business, to operate with reduced competition, or to diversify its services or products. In the process of merging and acquiring, these goals of the companies are coupled with advantages and potential disadvantages as salubrioushead.This make-up take ons to discuss the potential benefits that Zale toilet will obtain as it pursues its plan of merging with or acquiring Blue Nile, Inc. In addition, this paper aims to analyze each of the company by providing a company backgrounder and a comparative financial financial statement analysis, which includes liquidity analysis, activit y analysis, profitability analysis, and capital structure analysis.Furthermore, this paper aims to provide a company military rating of Blue Nile, Inc. as well as information on mergers and acquisitions that Zale Corporation need to consider preliminary to pursuing its plans.COMPANY BACKGROUNDERA. Zale CorporationZale Corporation is one of the largest specialty sellers of handsome jewelry. Morris Zale, Ben Lipshy, and William Zale founded the company in 1924. It is now operating 2,203 retail locations throughout the United States, Puerto Rico, and Canada. More so, Zale Corporation has established several different business units. These includeZales JewelersZales Jewelers, in like manner known as the Diamond Store, is recognized nationally as an authority in pretty jewels. It has big(p) into an international jewelry corporation relying on its commitment to excellence as well as its steady traditions. The focus of Zales Jewelers is to provide a range of choices for the majority of jewelry customers. Apart from fine jewelry, it also offers brand-name watches, which provides customers a variety of trade in at a scope of price points.Zales OutletThe stores of Zales Outlet are tied-up with the national selling programs of Zales Jewelers. Thus, it has gained recognition with customers. It competes with well-known retailers however, it tops the fine jewelers of the outlet market. Zales Outlet offers a diversified range of merchandise including certified diamond fight rings, colored gemstones, platinum jewelries, and Swiss watches from famous makers. It has established a devoted customer base that specifically seeks for tremendous value of discontinued styles.Gordons JewelersThe target market of Gordons Jewelers is the upper moderate customers who seek a complete selection of diamonds and fine jewelry. Gordons Jewelers has created an expert gross revenue team that offers a rare combination of value, service, and quality to its customers. Its marketing strate gy includes direct mail and report inserts and regional television features. The stores of Gordons Jewelers are designed in an appealing environment with friendly gross sales staff.Peoples JewelersPeoples Jewelers is the largest national jewelry retailer in Canada. Its focus is to provide a varied selection of fine jewelry and brand-name watches at affordable prices. Peoples Jewelers has developed its exclusive 100-facet Peoples Canadian Diamond Collection, which is mined, cut, and polished in the nor-west Territories. It ensures its customers that the hottest trends in jewelries including titanium, stainless steel, gemstones in all colors, gold fashions, circle pendants, and cultured pearls are offered in its stores.Mappins JewelersMappins Jewelers also caters to customers in Canada who seek classic fine jewelry and watches. Mappins offers a varied range of merchandise from engagement rings to modern and contemporary jewelry. The marketing programs of Mappins establish strong com mitment to excellence as well as strong traditions. Its television campaigns aim to carry out gift-giving programs while its direct mail campaigns aim to provide special values and strong communication with customers.Piercing PagodaPiercing Pagoda started from a single retail location to manacles of kiosks. It is the largest specialty kiosk retailer of extensive selection of gold charms, rings, body jewelry, bracelets, earrings, chains. It also offers stainless and funds jewelry.Piercing Pagoda was acquired by Zale Corporation in 2000 to broader the range of customers specifically in the younger customer category.Zale Corporation believes that this market appreciates quality jewelry at level price points. In return, the acquisition of Piercing Pagoda has opened the luck to capitalize on the resources of Zale Corporation and modernize the look of Piercing Pagoda in order to provide its customers with more desirable products.ZLC DirectZLC Direct is the online base of the brands of Z ale Corporation, which provides e-commerce web stores for both Zales and Gordons Jewelers. It provides direct access to customers who prefer to purchase quality merchandise on the Internet. The quality and service found in the stores of Zale Corporation is also exhibited in the sites of ZLC Direct as it also offers value, excitement, and convenience for online shoppers of today.Zale Corporation has established its mission of being the best fine jewelry retailer in North America. Its goal is to innovate and market unique jewelry assortments as well as to offer superior customer experience. Zale Corporation is committed to establishing strong and lasting relationships with its customers and at the same time build value for its shareholders. It assures its talented workforce of continues success through trainings and rewards as well as permanency of jobs.