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Case Study

Campari (A): A cocktail of organic and external growth

By Salvatore Cantale and Edwin Wellian

15 pages

June 2018

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Reference: IMD-7-1995

When Luca Garavoglia became chairman of the Campari Group at the age of 23 following the death of his father, he immediately adopted a strategy of fast growth through acquisitions. Over the next 24 years, Campari acquired 26 companies, spending over €3 billion and establishing its own distribution network in 20 countries. This two-part case series describes how Campari transformed from a single-brand local Italian company to an important player in the global spirits industry with over 50 premium brands distributed in over 190 countries. CASE A follows Campari on its journey from 1994 to 2018, providing an overview of its history, business strategy, market place, trends and competitive landscape. learning objective: The case describes the successful transformation and survival of Campari as a small player among “giants” in a niche sector of the spirits industry. It can be used for class discussion on different business and social topics, such as: 1)Business strategy (SWOT, Porter’s 5-forces); 2) Globalization (from local to global); 3) Growth through M&As (value creation, synergies); 4) Family-owned businesses (conflict of interest, strategic fit); 5) Marketing strategy (market trends, ethical role of marketeers).

Learning Objective

The case describes the successful transformation and survival of Campari as a small player among “giants” in a niche sector of the spirits industry. It can be used for class discussion on different business and social topics, such as:
- Business strategy (SWOT, Porter’s 5-forces)
- Globalization (from local to global)
- Growth through M&As (value creation, synergies)
- Family-owned businesses (conflict of interest, strategic fit)
- Marketing strategy (market trends, ethical role of marketeers)

Keywords

Strategy, Business Strategy, Mergers and Acquisitions, Company Value, Valuation, Trading, Discounted Cash Flow, Globalization, Family Business, Ethics, Marketing, Alcohol, Legislation

Settings

World/global, Italy
Campari Group, Consumer Goods, Food and Beverage
1994 - 2018

Type

Published Sources

Available Languages

English

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