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mfbertozzi
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Supply Network Guru
Re: More Acquisition and Merging in 2011
mfbertozzi   1/5/2011 8:55:47 AM
NO RATINGS

 

Good point Toms. Merging and acquisition seem the trend in 2011, as similar events happened also in other markets, I mean Cars/Vehicles  or Telecommunications Market. Possibile risk is related to time reaching full operations of merged companies and if merged companies will be competitive as alone. What lessons could be learned from Nokia-Siemens or Alcatel-Lucent history?

Toms
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Blogger
More Acquisition and Merging in 2011
Toms   1/5/2011 6:49:15 AM

     Barbara, you are right, the trend shows that many companies may get merged or acquired in 2011. For the last couple of years, we had seen that many small companies are merged or acquired with big companies or brands. During recession time almost all small and medium level companies strived hard for their existence. In such a scenario, only globally players or those who having major market shares, can survive. Merging and acquisition are good for the companies in many ways such as capturing the market share, wide networks of supply, global presence etc.

     At the same time, it can make a lot of drawbacks in market also. In my opinion this trend leads to the global monopoly of certain brands and may force the customers to accept, what they are offering. The healthy competition between different brands may get diluted and the choice of common peoples are going to be loose, because there may not be any alternative for them. Some other drawbacks are no price competition, lesser challenges etc.





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