There is no magic formula that makes acquisition successful. But doing your homework well enough is a sure way to be prepared for most eventualities. And being prepared is half of the battle, won.
For many, it’s not new news: entry into a new market brings the desire to penetrate, and monopolise that market through new product launches, a disruptive service offering or even simply through the introduction of a new status quo. SMEs are doing it all the time. In fact, almost daily, we read of the new, the most innovative taking over our headline news – and it’s an exciting time that we’re living in. But unfortunately, with all of this great disruption, it’s little wonder that news of the future of UK giants like Maplin, Homebase, Countrywide, New Look, Carpetright and more, is under severe question, as they struggle in the face of more innovative, agile, smaller businesses.
But who’s breaking the mold?
So, what are those corporates doing who aren’t falling prey to “the signs of the times”? While some retailers shutter stores, others are revising their business plans. And Nordstrom is just one of the latest retailers to trial a new business strategy through acquisition. In early March, Nordstrom announced that “To continually evolve customer experience, Nordstrom acquires retail technology companies BevyUp and MessageYes”.
Ikea recently did the same thing by buying up emerging Gig Economy giant, TaskRabbit (read more about it in this blog).
And while acquisition is emerging as a popular way for companies to boost their digital operations and footprint, many, like Nordstrom, are demonstrating their own agility by testing and trialling. It remains to be seen as to whether this is the right more for them digitally or not. But one thing is certain, where previously they were predominantly a retail-based organisation, by acquiring new technology as part of their growing strategy, they have placed their foot firmly into the Technology sector as they explore new market opportunity for within their own traditional, highly-challenged, environment.
What about other industries?
Retail is just one environment where this is happening. Internet Radio provider Pandora, also recently announced the acquisition of digital audio ad technology firm AdsWizz for $145 million, whose technology will be used to upgrade Pandora’s own ad tech capabilities, while the beauty and health industry saw L’Oreal announce their expansion into the tech space through the acquisition of the Canadian tech company ModiFace, a specialist in augmented reality and artificial intelligence applied to the beauty industry.
Change is happening. Investment, Mergers and Acquisitions are giving corporate organisations a new opportunity to move into the new – when others around them are falling prey to industry trends and declining economies. If you’re on the hunt to develop and agile, more fluid business model, and you’re looking to find the best strategy to help you penetrate and succeed within a new market, we’d love to speak to you.
Secure your future. Get in touch with us today.