Merger, Acquisition, and International Strategies

Merger, Acquisition, and International Strategies
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Merger, Acquisition, and International Strategies
In today’s business world, distinction and uniqueness in which business is carried out is very fundamental to the success of the business itself. Many developments have taken place over the years whereby several business institutions have embraced developments such as Mergers and Acquisitions as to fully maximize the potentiality of the business and also maximize on returns. Mergers and Acquisitions have become growth strategic drivers for corporations as they shift their emphasis gradually from cost saving. International strategies for multinational companies has also proved to be fruitful to most businesses globally.
The Microsoft Corporation is one of the multinational corporation that has overtime embraced Mergers and Acquisitions. For instance, Microsoft Merged with Nokia Corporation in the year 2013 as a strategy to rip the benefits of the mobile industry (Contractor, 2011). With time Microsoft proceeded to acquire Nokia as it needed to gain total control of the corporation. Microsoft Corporation put into practice the defensive rationale strategy while acquiring Nokia as compared also to the case where it put the same strategy into use while acquiring Skype Inc. the reason for this strategy is probably due to the fact and fear that other grown and developed corporations such as Google and other potential competitors could acquire the same corporation, considering their financial power, and at the end use it to strengthen their ecosystem at Microsoft’s expense.
From the critical point of view, the strategy used by Microsoft Corporation to merge and acquire Nokia Corporation is to a large extent a healthy one. The reason for this is that the business world is full of competition and therefore it’s solely the responsibility of any institution to identify legal and healthy ways to outdo the competitors as to enhance the business’ survival and growth (Contractor, 2011). Taking advantage of the business’ financial strength, the merger between the two corporations was of importance and technology being a driving factor in business, Nokia Corporation was the best choice to hit on.
It is evident that from earlier on, the two business entities had good collaboration often but their development processes were different. Each company had its own resources, culture, tools and trade secretes that led to operational inefficiencies. Hence, by bringing Microsoft and Nokia together Microsoft can henceforth utilize its capabilities to make the two companies more efficient. By merging, Microsoft could also easily put into use its existing relationships with other existing partners, operators and developers to rip off the best from the business (Moon, 2010).
The merger between the two corporations also comes with several benefits as to mention. These include: Enhancement of diversification: this comes as the corporation, Microsoft, will now be able to reach more clients and provide its products to them. A wider market is thus created.
Secondly, with mergers and acquisitions comes synergy. Micro...