IGCSE, A Level Business Student Forum

Q21 Analyse the benefits of takeovers as growth strategies to a business. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Rapid Expansion.
[AN] Takeovers allow a business to quickly expand its operations and market presence. Instead of starting from scratch, the acquiring company gains immediate access to the target company's assets, customer base, and market share.
[AN+] This rapid growth can be advantageous in capturing a larger market share.

[KN] Access to Expertise.
[AN] Acquiring another company often means gaining access to their knowledge, skills, and expertise.
[AN+] This can be particularly beneficial in industries where specialized knowledge is crucial.

[KN] reduced competition
[AN] Eliminating a competitor through a takeover can result in reduced competition in the market
[AN+] leading to better pricing power and market control.

[KN] access to new technologies or Expertise
[AN] Acquiring a company with specialized technology, intellectual property, or expertise can give the acquiring company a competitive edge.
[AN+] This is especially important in industries where innovation is critical.

KN: Increased Market Power
AN: A larger entity resulting from a takeover may have increased bargaining power with suppliers and customers
AN+: This can lead to better terms and conditions, including pricing advantages
KN: Strategic Advantages
AN: Takeovers can provide strategic advantages, such as filling gaps in the product or service portfolio
AN+: improving distribution channels, or bolstering research and development capabilities

[KN]Diversification
[AN]Acquiring another company can help diversify its products and services
[AN+]It will make business mold according to changes in demand

[KN]Reduced competition
[AN]competitors can be eliminated if the business takes over them
[AN+]This may lead to no pressure on prices and higher prices may be charges

[KN] reduced competition
[AN] taking over businesses will reduce the competitors as they are eliminating them by taking over them.
[AN+] this can help them to become a monopoly
[KN] Growth of the business
[AN] Takeovers not only reduces competitiveness but also helps the business to expand.
[AN+] Thus this helps them gain maximum market share.

[KN]Market Expansion and Access
[AN]Takeovers provide an opportunity for businesses to expand their market reach by acquiring established companies in new geographic areas or gaining access to new customer segments.
[AN+]This can lead to increased sales and revenue streams.

[KN]reduces competition
[AN] this is because takeovers are done strategically to sometimes reduce competition
[AN+] this helps the businesss gain an edge in the market and gain back its money spent easily

[KN] Rapid Expansion
[AN] Takeovers allow a business to grow quickly by acquiring established assets and operations
[AN+] This method bypasses the time and effort needed to build from scratch, accelerating the company's reach.

[KN] Increased Market share
[AN] Acquiring another business can result in a significant expansion of the acquiring company's share of the market
[AN+] This increased market share often translates to a stronger competitive position.

(Kn)eliminate competition (an) by taking over one’s competitors it can help to increase the firms chances of success or even a monopoly (an+) this will reduce the firms pressure and also bring other benefits from taking over
(Kn)increases market share (an) by removing its competitors it not only takes their market share but can help to increase their own market share (an) this sill further increase sales as the brand image improves

(kn)remove competitor permanently
(an)it might have been a major competitor in the market
(an+)taking over it increases productivity and decreases competition
(kn)accès to new market
(an) the firm might have been trying to get into a specific market but it failed to
(an+)however taking over a company might have given them the access to that market

[KN] Helps to remove a chunk of competitors.
[AN] Takeovers are often done strategically for various reasons and so one of them could be to reduce competition which will lead to increase in productive efficiency.
[AN+] Moreover it will help gather the customer base of competitor as well, increasing the total market share.

[KN] Guaranteed strong marketing position.
[AN] By taking over other businesses it it possible that the business may become a market leader which will increase the brand image.
[AN+] Thus this will lead more access to the market.

[KN] reducing in competition
[AN] with the reducing the number of firms in the market would lead to lower competition as the competitive firm would have been taken over
[AN] leads to higher market share

[KN] growth of the business
[AN] with the rise in business operation the business will rise it's size
[AN+] lead to higher profits

(KN) Market Expansion and Access
(AN) Takeovers provide an opportunity for businesses to expand their market reach by acquiring established companies in new geographic areas or gaining access to new customer segments.
(AN+) This can lead to increased sales and revenue streams.

(KN) Reduces competition
(AN) this is because takeovers are done strategically to sometimes reduce competition
(AN+) this helps the businesss gain an edge in the market and gain back its money spent easily

[Kn ] reduce competition
[An]Some companies may opt for a strategic takeover. This allows the acquirer to enter a new market without taking on any extra time, money, or risk.
[An+]The acquirer may also be able to eliminate competition by going through a strategic takeover which will give a competitive edge and increase market share

[Kn] economies of scale
[An]though a takeover the acquirer company can often achieve economies of scale (by buying in bulk and getting bulk discount
[AN+] which can lead to cost saving and increase efficiency

Abbas17 wrote: ↑Tue Nov 07, 2023 9:52 pm (KN) Market Expansion and Access
(AN) Takeovers provide an opportunity for businesses to expand their market reach by acquiring established companies in new geographic areas or gaining access to new customer segments.
(AN+) This can lead to increased sales and revenue streams.

(KN) Reduces competition
(AN) this is because takeovers are done strategically to sometimes reduce competition
(AN+) this helps the businesss gain an edge in the market and gain back its money spent easily

PLAGIARISM