On 13 Jun 2007 22:38:09 -0700, [EMAIL PROTECTED] (Timothy Sipples) wrote: >But that's not the whole story by any means. There are at least three >strategies when you buy out another company: > >1. "Buy to bury." You buy the products to kill them. >2. "Buy to milk the cash flow." You buy the products to enjoy a stream of >revenue (acquiring annuities). >3. "Buy to grow." You buy the products to take them to the next level of >technical advancement, expanded sales channels, and/or synergies.
4. Buy to acquire patents. The company that makes Bag Boy golf carts was #2 in the 3 wheeled push carts model, partly because the #1 company had some patents it needed. So it bought a baby stroller company with the patents it wanted. This does apply in our business. 5. Buy to acquire skills. It is interesting that Univac bought the RCA design, but didn't keep the computer designers after they built their RCA like computer. So IBM hired the laid off engineers and built theirs. 6. Buy to offer single-source suites of products. You don't particularly want a product, but your customers do, so you make it easy for them to buy *your* product via bundling. IBM can't be like Microsoft with this because of the court order. ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html
