Acquisition of Android by Google

Change Initiative Assessment: Acquisition of Android by Google

Acquisition of Android by Google

Every organization have various strategies that they incorporate in their daily operations to ensure they attain their objectives. The strategies applied in the organization may either be successful or fail. An organization that profits and meets other objectives even in a competitive environment proves to have effective strategies that are working, hence successful. On the other hand, if an organization cannot handle competition, they fail to reach their objectives and should adopt new competitive strategy in order them to survive. Some of the transformation a company can go through to stay competitive include merging with other companies, going global, downsizing, new strategy directions and acquisition of other companies. Acquisition refers to a company buying another company by purchasing all its shares and assets to control it. The main purpose of doing this is to control the market share and gain competitive edge (Mergers and Acquisitions (M&A), 2022).

Acquisition as described above involves acquiring a company and is different from merging and amalgamation. When an acquisition occurs both the parent company and the acquired one maintain their brand names and deal in separate product. Merging on the other hand, involves acquiring of assets and shares from one company to another and it totally seize to exist as they become one. Acquisition has various advantages and disadvantages. Some of the benefits an acquisition may experience is ease of entry into new markets. With acquisition, entry barriers into new market are reduced as the cost incurred to enter new market like market research, new product development and time needed to build customers is cut. This is because the acquisition has a brand that is not new to the market and already existing customer base. Another benefit of acquisition is that it helps in gaining market power. This means that the market share of the mother company is increased significantly thereby gaining control. (Kim et al., 2011).  Also, the acquired companies get experts to help in improving their operations. A wide variety of experts from legal experts, financial experts and technological specialist can be accessed. This can consequentially result to rapid growth of the acquisition. Nevertheless, acquisition brings about several challenges. Conflict of objectives may be experience as these two companies were initially operating differently hence, they had different objectives. Since an acquisition took place the parent company may desire to move to new market, but the acquisition may have different view. This can slow down the efforts of the parent company (Nasrudin, 2022).