May 5, 2010

The groom next door…

The businessmen who seek our consultancy services usually know that their company needs to grow, and they ask us to find a suitable partner to ensure this growth. Company mergers have to be considered by all companies, small and big, since each company needs to grow in order to sustain its business.

We have seen that a few of our clients approach the merger of companies or finding a new partner with a different view. This approach is influenced by the entry of a strong groom to one of their neighbours, that is to their market. If one of your competitors has taken in a new partner, who is strong enough to influence the market, then you may feel yourself in danger of losing your place in the market. The marriage of your competitor has an effect on your possible marriage.

You might think that the competitors of the new groom might contact you now, thinking that your market is interesting and profitable. Although this behaviour has been observed in developing markets in a few cases, it is not a strong argument for you. Just like water, the business life follows the most comfortable path. It is most probable that the competitors of the new groom will concentrate on markets where no strong marriages of companies have been yet made, especially if you do not have a big potential market. In the developed markets the influential actors try to prevent others from entering their market and make it very hard for their competitors.

Waiting for all your neighbours to go into a marriage may lead you to lose all your marriage prospects. It  may bring you distressing results since you also need to grow like any other company.

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