There are at least top six competitors (shown below) against which a business requires advantage. The competitors are:- 1. Direct Competitors 2. Suppliers 3. Buyers 4. New Entrants 5. Product Substitutes 6. Government Agencies. Each of them attempts to exert downward pressure on a business's return on investment (ROI). Competitor # 1. Direct Competitors: These refer to firms that make [...]
The following points highlight the ten major arguments in favour of acquisition as a strategic choice for a firm. The arguments are:- 1. Reduction of risk 2. Avoidance of profit slump 3. A means of entry into a new area 4. A means of obtaining cash 5. Welding together a fragmented industry 6. Removal of competition 7. Opportunity for synergy [...]
The upcoming discussion will update you about the difference between acquisition criteria and strategic approaches. Difference between Acquisition Criteria and Strategic Approaches Acquisition Criteria 1. Synergistic nature product/market. 2. Inefficiency in marketing structure and designs. 3. Poor motivation of management team. 4. Underutilization of manufacturing capacities. 5. Under-exploitation of trademarks, brand names and copyrights. 6. Under-utilisation of financial resources. 7. [...]