How has the company used horizontal mergers and acquisitions to strengthen its competitive position?

Multiple Choice

• Utilized traditional technology and complimentary resources.

• Introduced new products and services to Ticketmaster.

• Leveraged economies of scale to create a more competitive cost-efficient operation.

• Discontinued the managing artists to cut costs.

• Added resources and increased staff.

 

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Once a company has settled on which of the five generic competitive strategies to employ, attention turns to what other strategic actions it can take to complement its competitive approach and maximize the power of its overall strategy. One such decision is whether to bolster the company's market position by merging with or acquiring another company in the same industry. In this activity you will examine the merger and acquisition strategy of Live Nation, a live entertainment and e-commerce company. Mergers and acquisitions are much-used strategic options to strengthen a company's market position. A merger is the combining of two or more companies into a single corporate entity, with the newly created company often taking on a new name. An acquisition is a combination in which one company, the acquirer, purchases and absorbs the operations of another, the acquired. The difference between a merger and an acquisition relates more to the details of ownership, management control, and financial arrangements than to strategy and competitive advantage. The resources and competitive capabilities of the newly created enterprise end up much the same whether the combination is the result of an acquisition or merger. Merger and acquisition strategies typically set sights on achieving any of five objectives: 1. Extending the company's business into new product categories 2. Creating a more cost-efficient operation out of the combined companies 3. Expanding a company's geographic coverage 4. Gaining quick access to new technologies or complementary resources and capabilities 5. Leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities Once a company has settled on which of the five generic competitive strategies to employ, attention turns to what other strategic actions it can take to complement its competitive approach and maximize the power of its overall strategy. One such decision is whether to bolster the company's market position by merging with or acquiring another company in the same industry. In this activity you will examine the merger and acquisition strategy of Live Nation, a live entertainment and e-commerce company. Mergers and acquisitions are much-used strategic options to strengthen a company's market position. A merger is the combining of two or more companies into a single corporate entity, with the newly created company often taking on a new name. An acquisition is a combination in which one company, the acquirer, purchases and absorbs the operations of another, the acquired. The difference between a merger and an acquisition relates more to the details of ownership, management control, and financial arrangements than to strategy and competitive advantage. The resources and competitive capabilities of the newly created enterprise end up much the same whether the combination is the result of an acquisition or merger. Merger and acquisition strategies typically set sights on achieving any of five objectives: 1. Extending the company's business into new product categories 2. Creating a more cost-efficient operation out of the combined companies 3. Expanding a company's geographic coverage 4. Gaining quick access to new technologies or complementary resources and capabilities 5. Leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities

Answer rating: 100% (QA)

L ever aged economies of scale to create a more competitive cost efficient operation Ticket master h... View the full answer