Acquisition Strategy Essay

In today’s market it is very important for company’s to remain competive in order to maintain an edge over its competitors. The days that a company can rely on its reputation to continue making profits are gone. Today, everyone is looking to save money by buying less expensive items like economy brands, considering that the diffrences between the two products are similar and the features that are not offered are of little value.

This will make a consumer buy the less expensive item.

Don't use plagiarized sources. Get Your Custom Essay on
Acquisition Strategy Essay
From as low as $9/Page
Order Essay

Like consumers, companies are also looking to save money and maximize profit. One way of doing this is through acquisition strategies. Combining the operations of two companies is a very good option for companies that are looking to stregnthening the company’s competincies and competitiveness, this will ultimately open new market opportunities (Gamble/Thompson, p. 119). The benefit of this type of strategy, unlike alliances, they do not go far enough 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 position through acquisiton, to include resources and competive capabilities. The first example I will use it Wells Fargo & Co. results from the acquisition of Wachovia Corporation. During the economic crisis Wells Fargo & Co. acquired Wachovia Corp in a bail out to keep the bank from going under. At one point Wachovia was Wells Fargo’s competitor. After the acquisiton it made Wells Fargo a banking giant absorbing its competion.

Earnings from that acquisition have earned Wells Fargo Financial & Co. a 21% earnings since the acquistion, reporting record profits. This acquistion has allowed them to gain market share, this was mostly created by winning new customers. Mortgage loans was the top earner and low rates and prices of homes falling to record lows has allowed the company to grow even in these tough economic times.

Additionally, the acquisition of Wacovia Corp. moves Wells Fargo as the second 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 long time partner of DuPont, is a very good and proven 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 global challenges in food production and fossil fuel. This effort will position the company ahead of all rivals addressing dramatic growth in human population 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 combined companies. The applications do not need to be duplicated, meaning their buying power will increase, administrative functions do not need to be replicated, and will further create more cost savings by downsizing. This acquisition will also allow them to enter new product categories, for example 65% of Danisco’s 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 production and fossil fuel.

The Homework Writings
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.


A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.


Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.


Flexible Pricing

Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.


Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.


Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.


Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.