Bass Pro Merger Essay

775 Words4 Pages

Back in October 2013 the major outdoor retailer Bass Pro Shops struck a deal to to acquire a major competitor, Cabela’s, for about $4.5 billion in cash. These are two major sellers of outdoor related gear, and they have both spent decades as competitors building over-the-top megastores.

Bass Pro Shops was founded by John Morris in 1971 in Springfield, Missouri. It has since grown to roughly one hundred locations and posted revenues of $4.45 billion as late as 2015. It is a big source of employment for locals, as they have 22,000 jobs. The store is known for its line of fishing accessories and its hunting department. Because of its huge aquariums and animal exhibits, it has become a major tourist attraction, and it has helped bring in major revenue. Cabela’s was founded …show more content…

hunting, camping, and fishing market” (Germano & Helliker, 2016). It will also create a national chain of more than one hundred eighty stores and 40,000 employees. Morris will serve as the chief executive and majority owner of both companies. Both had been publicly traded even before the …show more content…

One reason is they can have a significant force in the hunting and fishing market. By owning twenty percent, they can drive prices up or down and get customers with low prices or running other companies out of business. The only other major hunting and fishing retail outlet is Dicks Sporting Goods, which is a fraction of the size of Cabela’s and Bass Pro Shops. They can also have a major focus on what is being sold and in mass production. Cabela’s tried mass producing after being known for high-end hunting gear, and dedicated hunted stopped shopping at the store unless they needed products in mass quantities. This led to financial problems for the store. Now, Bass Pro Shops can produce in mass quantity while also producing high-end

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