Friday, October 4, 2019
The Acquisition of Walls With Polka and the Acquisition of Adobe With Research Paper
The Acquisition of Walls With Polka and the Acquisition of Adobe With Macromedia - Research Paper Example Acquisition is the purchase of one company by another company. For successful acquisition deal, company should take enough data about the market position and market performance of acquiring company. Because of not collecting enough data, 50% of acquisition deals are unsuccessful. Here we represent the two examples of successful acquisition deals. Acquisition of Wallââ¬â¢s with Polka In 1993, the administration of Lever Brothers formulated a team to search for business potential of Ice Cream in Pakistan. This team went back with the result that there is a lot of potential of Ice Cream business in Pakistan. So they decided to launch Wallââ¬â¢s ice cream in Pakistan. Wallââ¬â¢s is the biggest ice cream manufacturers in the world and second to it is Nestle. The administration of Wallââ¬â¢s wanted to enter in the market through acquisition strategy. They wanted to acquire Polka which was the established local brand and was representing the only national ice cream business in P akistan. They wanted to save time by acquiring Polka which was needed to capture the market. In 1994 Lever Brothers tried to acquire Polka ice cream for US$ 600 million but Polka refused the bid and they demand one billion rupees. But Wallââ¬â¢s established an ice cream factory in eleven months and did not acquire Polka (LePage, 2007). In February 1995, Wallââ¬â¢s launched with twelve products. After the launching they gave tremendous services and Polka loosed its market share. At this time Polka approached Wallââ¬â¢s to sell itself but now Wallââ¬â¢s had done all the hard work which they did not initially want to do by acquiring Polka. The administration of Polka spread a rumor that Nestle is coming through Polka which Wallââ¬â¢s did not want because Nestle is the biggest competitor of Wallââ¬â¢s. So Wallââ¬â¢s purchased Polka in 1997. The Strengths of the acquisition of Wallââ¬â¢s with Polka. After the acquisition they are working together for many years. O n Polka packaging there is a brand mark of Wallââ¬â¢s ice cream. The acquisition of Wallââ¬â¢s with Polka enhances the resource strengths and competitive capabilities of these companies in this way. 1. This acquisition made Wallââ¬â¢s the unchallenged leader and now the sale of Wallââ¬â¢s 85% and all other brands like Yummy, Hico and Igloo have sale with single digit. Omore is another emerging brand but its sale cannot compete Walls. 2. The Wallââ¬â¢s emerged as ââ¬Å"Impulse Brandâ⬠3. Unilever is also the most reliable brand in the country and through this acquisition Polka also saves itself from the tough competition and also realize that it was facing loss in market share before the acquisition 4. If Nestle was approached Polka then it would become biggest threat for Wallââ¬â¢s as Polka was the only local brand and also most familiar brand for the people of country. The Wallââ¬â¢s save itself from tough competition through acquisition. Acquisition of A dobe with Macromedia Adobe Systems Incorporated is an American multinational computer software company and it was founded in 1982 by John Warnock (Adobeââ¬â¢, 2012). The company has focused upon the creation of multimedia and creativity software products. In 2005, Adobe acquired its former competitor Macromedia.
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