Cisco Systems, Microsoft, and IBM often acquire small, technology-based entrepreneurial firms. Why would Cisco Systems, Microsoft, and IBM, which each employ hundreds of product development specialists and engineers, buy other firms to acquire technology and add to their product lines, rather than developing the technology and new products in-house?
Answer to relevant QuestionsGoogle reportedly offered to buy Groupon for $5 billion to $6 billion in November 2010—an offer that Groupon turned down. Why do you think Google wanted to acquire Groupon, and why do you think Groupon turned Google down? Some firms might find Uber to be an attractive acquisition candidate. Why would this be the case? What types of firms might be interested in acquiring Uber? What is a product line extension strategy? Provide an example of a product line extension strategy and describe how its effective use might increase a firm’s sales. Spend some time looking at Wahoo’s Fish Taco’s Web site, focusing particularly on its menu and its store layout. Do you think the business is well positioned or poorly positioned to take advantage of current trends in ...What are the principal advantages and disadvantages of buying a franchise?
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