O'Reilly logo

When Growth Stalls: How It Happens, Why You're Stuck, and What to Do About It by Steve McKee

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 5. Loss of Focus

In early 2005, rumors were swirling that legendary retailer Neiman Marcus was on the block. In March of that year, investment bankers were predicting a price in the $4 billion range based on the company's stock price, which had recently seen double-digit increases and was hovering in the mid-$80s. But one analyst cautioned that with its gains, the company would be harder to sell because, in his mind, the market for luxury items might have peaked. His exact words were, "Neiman Marcus is skating on thin ice."[]

So much for thin ice. In less than sixty days, Neiman Marcus announced a deal whereby shareholders would cash out at $100 per share, based on a total purchase price of $5.1 billion. Why the premium price? Kewsong ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required