Mergers and Acquisition Strategies
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Combining the operations of two companies is an attractive strategic option because Mergers and Acquisitions set sights on any of five objectives. Opening unpaved avenues of new market opportunities. and strengthening the resulting companys competitive edge.
Even though mergers and acquisitions do not always produce the desired outcome, combining the operations of two companies is an attractive strategic option because mergers and acquisitions set sights on any of five objectives. Opening new market opportunities. and strengthening the resulting companys competitive edge.
First, combining the operations of two companies is an attractive strategic option because Mergers and Acquisitions set sights on any of five objectives. All of these objectives can give the acquiring company an edge in competencies and competitiveness. Whether to create a cost efficient operation, expand the geographical coverage, enter into new products or new technologies, or in order to enter into new markets.
Additionally, opening up avenues of new market opportunities. Combining the operations of two companies can provide an attractive advantage strengthening the competiveness and opening up new market opportunities for achieving gains. Merger and acquisitions have long been used to create cost effective operations, gain quick access to new technology, and expand geographical coverage and product range. There are many examples of this business strategy.
Google is increasingly focused on innovation and product/application integration to develop new businesses and business models. In addition to their own resources, Google is relying upon an aggressive acquisition strategy to help them expand in different business directions including advertising (improvements), social media, and commerce.
One year, 24 acquisitions. Whats up with that? Well, Googles had their busiest acquisition year, ever. The big ones stand out clearly, like the $12B Motorola acquisition, and the finally-finalized $400M AdMeld acquisition, which became legit last June. Motorola Mobility: This ones pretty obvious. As Googles largest-ever acquisition, it serves to fight directly against what Google CEO Larry Page calls “companies including Microsoft and Applebanding together in anti-competitive patent attacks on Android”. All the new Android phones are based on a relationship with Googles Gmail. The competitive capabilities have proven huge completely changing the mobile phone industry.
Finally, the most important reason combining the operations of two companies is an attractive strategic option is strengthening the resulting companys competitive edge. The Airlines are infamous for using this strategy.
Southwest and Air Trans merger is a classic example of expanding a companies geographical coverage to new locations and resulted in strengthening the companies competitive edge over