On 11/04/2012 02:43 PM, scott wrote:
>> For example, Ferrari is famous for making luxury cars that only a few of
>> the richest people in the world can afford to drive. Ferrari is
>> currently owned by Fiat, famous for making shit cars that no sane person
>> in their right mind would want to drive, never mind own. So... how the
>> hell did Fiat manage to afford Ferrari?
>
> Because there are 2 million Fiats sold each year, yet only 5000
> Ferraris. Which brand would you rather own?

On the other hand, the profit on selling one Fiat pales into 
insignificance compared to the profit on selling a single Ferrari. So 
you don't need to sell anywhere near as many to make the same yearly 
profit. It /should/ be a no-brainer; Ferrari /should/ be making vastly 
more money than Fiat will ever own. So...???

>> Similarly, Cadbury, maker of fine chocolates, was recently bought by
>> Kraft foods, makers of naff cheap crap. How the heck did /that/ happen??
>
> They offered a high enough price that was acceptable for the company,
> much like any other trade.

My question was more "how the hell can they afford that?"

>> Uh... I'm not sure that (say) Tesco's own cornflakes are made by the
>> same people as Kellog's cornflakes.
>
> Maybe not that exact example (I have no idea who makes Tesco's
> cornflakes), but plenty of companies make their own brands and also the
> stuff for supermarket brands. They already have all the equipment and
> logistics in place, plus a reputation with the supermarket, it will
> benefit both companies in the end.

I'm just trying to visualise the conversation though: "Yeah, we can sell 


that wouldn't be laughable.

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