Acquisition Strategy Essay

In todays market it is real heavy for come withs to remain competive in direct to maintain an edge over its competitors. The days that a association can rely on its constitution to continue making profits argon gone. Today, everyone is looking to save money by obtaining little expensive items like economy brands, considering that the diffrences between the deuce products are similar and the features that are not offered are of little value.This testament make a consumer buy the less expensive item. Like consumers, companies are overly looking to save money and maximize profit. bingle way of doing this is through acquisition strategies. Combining the operations of two companies is a very dangerous natural selection for companies that are looking to stregnthening the telephoners competincies and competitiveness, this forget ultimately open new market opportunities (Gamble/Thompson, p. 119). The get of this type of strategy, unlike all toldiances, they do not go far en ough for the resources needed and a very important factor, ownership.In the following paragraphs, I will give two examples of two different companies in different industries and explain how they will stregnthen their market place through acquisiton, to include resources and competive capabilities. The first example I will use it rise Fargo & Co. results from the acquisition of Wachovia passel. During the stinting crisis swell Fargo & Co. acquired Wachovia Corp in a chemical bond out to keep the bank from going under. At one point Wachovia was Wells Fargos competitor. later on the acquisiton it made Wells Fargo a banking giant enthralling its competion.Earnings from that acquisition have earned Wells Fargo Financial & Co. a 21% earnings since the acquistion, report record profits. This acquistion has allowed them to gain market share, this was mostly created by winning new customers. Mortgage loans was the top wage earner and low rates and prices of homes falling to record lo ws has allowed the company to grow even in these tough stinting times.Additionally, the acquisition of Wacovia Corp. moves Wells Fargo as the uphold largest bank, second only to Bank of America. The strategy has allowed them to acquire a larger share of the financial market. The second company I will discuss is DuPont Nutrition & health and Applied BioSciences acquisition of Danisco Corp. Once a gigantic time partner of DuPont, is a very good and turn out company, is a good fit because of their proven market science business and offers clear synergy for them. The acquisition will make them the clear leader in industrial biotechnology with inovations in world-wide challenges in aliment production and fossil fuel. This grounds will position the company ahead of all rivals addressing dramatic growth in human state in the years to come.Danisco is well established company that has research and application capabilities. This will create a more cost efficient operation of the hav e companies. The applications do not need to be reprised, content their buying power will increase, administrative functions do not need to be replicated, and will besides create more cost savings by downsizing. This acquisition will also allow them to memorialise new product categories, for example 65% of Daniscos revenue comes from specialty foods, product substitution items such as sweetners and enablers.This will allow them to enter renewable materials and addressing food needs. In conclusion, I have discussed Wells Fargo & Co. , and how their acquisition of Wachovia Corp has allowed the company to gain a larger geographic coverage has helped it create a more cost efficient operation by allowing to cut overhead costs by elliminating duplicate processes. Second, DuPont Nutrition & Health and Applied BioSciences acquisition of Danisco Corporation has allowed DuPont has made them the clear leader in industrial biotechnology with inovations in global challenges in food producti on and fossil fuel.