Mad Catz
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Mad Catz Interactive and Joytech,
In the University of Phoenix simulation of Lester Electronics, the company is being faced with a myriad of decisions whether to merge with long-time companion and business relationship, Shang Wa or to form a separate partnership with Transnational. In benchmarking the cross-border growth of companies compared to the University of Phoenix simulation of Lester Electronics one can see that the reason that companies such as Mad Catz form new relationships in order to expand into new areas.
“Mad Catz Interactive, a third-party interactive entertainment accessory provider, announced that, consistent with its strategy to further diversify Mad Catz products and geographic distribution capabilities, it has acquired assets and assumed certain liabilities of Joytech from Take-Two Interactive Software for approximately $3.7 million (M2 Communications Limited, 2007).”
The company Mad Catz Interactive was faced with the issue of wanting to expand into new areas and diversify products.
“Joytech manufactures third-party video game peripherals and audiovisual accessories with retail distribution in Europe and North America. The addition of Joytech personnel will allow Mad Catz to initiate a European product development effort and bolster Mad Catz sales team. The European market has been a key growth driver for Mad Catz and this acquisition reinforces that strategic initiative (M2 Communications Limited, 2007).”
In obtaining a new area such as the European market from Joytechs acquisition the company is beginning to realize their cross-border growth opportunities. Several companies have gone the route of cross-border growth with the hope of increasing experienced technological staff, gaining a new sales territory, and for cheaper labor and costs associated with running the business. In doing so each company