Focus is on Amazon merging with Walgreens so that Amazon can use its quick shipping methods to deliver prescriptions and Amazon using Walgreens locations for AmazonGo and other services where physical location is needed.
1. If your chosen firm is diversified, do the evaluation of your firm’s diversification strategy (see chapter 8 in the textbook). If your chosen firm is a single business, conduct a careful analysis of its industry including trends and the analysis of competitive forces (see chapter 3 in the textbook).
2. Suggest the target for acquisition. Explain why it is a good target for acquisition. Use ideas from chapters 6, 7, and 8. In particular, discuss the following:
a. If the acquisition target is a single/dominant business, please analyze its industry and its position in the industry. Use the industry analysis from Chapter 3 and the Boston Consulting Group’s matrix analysis. See links to explanations of the BCG matrix below.
b. Will it be a related acquisition? If yes, is it vertical or horizontal or something else? Why?
c. Will this acquisition result in economies of scale or economies of scope? Why/why not? If it is not projected to create economies of scale or scope, why are you suggesting this acquisition?
d. What is the projected market impact of this acquisition? Does it reduce competition? Why/why not?
e. Does the target possess any technologies that your firm needs? Which ones? Why does your firm need those technologies? Can it acquire those technologies separately from the whole target? Can your focal firm license those technologies instead? What is the projected impact of those alternative modes of action? Does an acquisition still make sense after this analysis? If not, why are you proposing it?
f. Does the target have access to any key markets, distribution channels, suppliers, or government officials?
g. Would an alliance or a joint venture be a better option? Read the article “When to ally and when to acquire” for ideas that will help you decide (available on Blackboard). Also consult chapter 6 from your textbook (the part on alliances).