Introduction
Following the currently competitive business environment, various business organizations are strategizing to acquire others, with an aim of reinforcing their competitive potential. Considering the rapidly rising international marketing, the strategy of acquisition among business organizations seems to facilitate better business performance in them. This is on the basis that, the acquisition strategy among companies brings resource strengths and competitive capabilities together, resulting into strengthened market positions. For instance big companies like IBM and Boeing have acquired Netezza and Maryland-Based Conquest, Inc. respectively; which has made their performance higher through combined strengths and competitive advantages. As it has been observed in these companies, the acquisition strategy has enhanced their being capable to position their target markets strategically, due to combined efforts and resources.
The Acquisition of Netezza by IBM Corporation
As reported by the president of the IBM Corporation, the company’s strategy of acquiring Netezza will see the company very high, into future big data. This can be described as the ultimate competitive advantage for the merged companies, since the positioned market is on the internet search engines. It is important to note that, the acquisition would reduce the warehousing prices for data, which makes the merger to have competitive advantage in the market of having cheaper products. Through offering cheaper commodities and services, companies will steer up in terms of their overall performance. Though acquired companies do not have the chances to innovate, the entire strategy can be described as facilitating better and higher performance between the two companies. In this respect therefore, the strategy of acquisition of Netezza by IBM Corporation seems to favor the competency of the tow companies in the currently competitive business environment, especially in the information systems industry.
The Acquisition of Maryland-Based Conquest by Boeing
Being one of the biggest companies in the air-craft manufacturing industry, Boeing has lately finished its acquisition of Maryland-Based Conquest. Having good reputation in the provision of architectural services and software technology solution, the Maryland-Based Conquest’s acquisition by Boeing provides has facilitated flexibility in the manufacturing of aircrafts. It is important to note that, one of the challenges facing air-craft manufacturing industry is the high costs associated with changes in designs for aircrafts. On this basis, the strategy of acquisition of Maryland-Based Conquest by Boeing makes it easier for changes in aircraft designs by the Boeing Company. Through this strategy of acquisition, Boeing has acquired competitive advantage of being quite flexible in terms of its products, as the Maryland-Based Conquest will provide for ready designs for the aircrafts, with regard to the prevailing market conditions. Certainly, the strategy of acquisition of the Maryland-Based Conquest by Boeing has propelled the tow companies higher in terms of their performance in the complex, and competitive air-craft manufacturing industry.
Conclusion
In summary, the strategy of companies acquiring others has been found to play a very significant role in enhancing competitive advantage between the companies involved. Considering the situation of IBM acquiring Netezza, the ultimate performance of the two companies seems promising, since their merging reduces their production cost, resulting into their products being cheaper. Further, the acquisition of Maryland-Based Conquest by Boeing Company has facilitated flexibility in production of aircrafts, since the Maryland-Based Conquest has provided Boeing Company with premier architectural services. As a result, the two cases of acquisition have been found to enhance resource strengths and competitive capabilities of the companies involved, in the currently competitive business environment.