Acquisitions........

[genX]

Now a days we came across a lot of news about acquisition of a company by some other company.... For example TCS acquires the Corus.....
and the list goes on it's just a single example of present domain.......
What's you say guys....... The policy of acquisition to enlarge yourself is right..???

[pendelton]

Yes, if you want to expand in to an area and have a chance to buy an existing business entity that has a good name. It can be less expensive to buy a business than it is to start a new name in any particular industry.

[naruts]

for me Policy of acquisition its the idea that comeout with something, specially when project comes with R&D budjet, just imagine in single company doing a large R & D i think the can afford to doing it alone so the the idea of policy can solve the problems.

JUST THE IDE..

[Fergal]

Companies also use acquisitions to eliminate the competition. Large companies often by smaller companies who compete directly with them.

[cenfos]

yeah less competition more good service and profit

[Jenson]

Similar things like what we saw with Microsoft planned acquisition of Yahoo. By doing that, they are combining the second best (yahoo) and third best (msn) to be able to challenge Google's dominance.

[Aspire7]

Usually acquisition is used to eliminate competition so that the bigger company will have complete control over the market. Other than that, they also gain in terms of getting the knowledge and expertise of the smaller company.

[wkhaiaun]

It's a big fish eat small fish world nowadays. :) Acquisition will benefit both companies. By combining resource and technically expertise, the single merger will able to pose a challenge in the niche that they are in.

Big companies also like to acquire smaller ones especially the cost of doing so is usually much less than starting up from scratch.

[deepak_sharma]

As far as your planning is right acquisitions could be feasible.Its not necessary that big fishes are eating smaller one as said by wkhaiaun.The first example of tata and corus is answer to this.Corus was about 10 times bigger then tata steel then also tata took over..