This blogs is an academic exercise part of the Organization and Cultures course at The International Business Department at Universidad EAFIT

sábado, 14 de mayo de 2011

MERGING AND ACQUISITION


An acquisition is when one company buys another one, it is a benefit for the purchaser because it can increase its market power buying competitors and doing vertical integration the company becomes to be a big part of the market. By an acquisition, companies can control the distribution network and are able to overcome entry barriers. For companies from certain countries is easier than to other ones, because of the capital and the legislation.
Look for different real case examples of forced growth strategies and describe what happened afterwards?
A real case example of forced growth strategies comes from Microsoft Corporation that  is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions.
The first acquisition was Forethought on June 29, 1987, but then Microsoft acquire a lot of companies as Hotmail in December of 1997, HOB Business Solutions in November of 2007, and the most recent and important one Skype Communications in May of 2011, among others.
Afterwards the company has consolidated its name and products as an important brand all over the world.
references: medios.batiburrillo.net

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