Corporate- A Smart Purchase- Sunglass Hut

 Disney should buy Sunglass Hut. Sound strange? It should. Nearly all acquisitions made by Disney have been entertainment based and Sunglass Hut is not an entertainment company, so you may be asking, why on earth would they buy an fashion accessory company? Let's look shall we:   
The basis: Think about how the business continues to grow through acquisitions- Disney bought Pixar to keep their movies fresh and exciting, the company bought channels in Russia and India to expand their television programming internationally, etc. The point here is that to successfully expand as a company, EACH of the COMPANY PILLARS must expand independently. We've seen the studios and television acquire, the parks and resorts continue to build, but consumer products expansion has been relatively limited. So, if we look at it from that perspective, what is needed is some product category that Disney can capitalize on to expand their current operations.

1) Sunglass Hut is a company that specializes in selling different types of high-end sunglasses. These glasses typically sell for $150-$350 and are located in nearly every mall across the country. As a company, Sunglass Hut has never made much profits and after its rapid expansion was voluntarily acquired by the Luxottica Group, the world's largest eyewear company based in Italy.  Both Luxottica Group and Sunglass Hut have been hit hard by the economy with Sunglass Hut only averaging revenue of $680 million currently. So this means they are available and can be purchased relatively cheaply.

2) Since Sunglass Hut is located in every mall in the country, Disney can acquire the company, and have them continue operations as they are. Disney already runs their Disney stores in most malls throughout the country, so they have the ability and knowledge how to run locations such as this.

3) Though Disney has no experience selling sunglasses, they would still succeed in these endeavors based on their management. Disney SHOULD get into the sunglasses business...why? Well for one thing, it's a small business with minimal competitors. Second, think about where the parks are located...all in sunny and hot environments. Disney can capitalize on their own geography and sell them accordingly. Why not? They sell their own ponchos when it rains...this would put them in charge of the elements.

4) Imagine every Downtown Disney with a Sunglass Hut. If people are willing to spend $350 on glasses at the local mall then they would spend a whole lot more at a Disney resort.

5) Disney is as much a consumer products company as it entertainment and Sunglasses are an easy way for Disney to smoothly transition more into the fashion/clothing market. The beauty of this idea is that the locations are already set up nationally and the brand is already identifiable. There is very little to lose in this situation!