Acquisition Preparation

A good example of expanding into new markets via acquisition, is detailed succinctly by Goedhart, Koller and Wessels in their article, The Six Types of Successful Acquisitions . Granted, the example is based on an atypically large transaction – Proctor & Gamble’s acquisition of Gillette – but it still stands: ‘In Proctor & Gamble’s (P&G) acquisition of Gillette, the combined company benefited because P&G had stronger sales in some emerging markets, Gillette in others. Working together, they introduced their products into new markets much more quickly.’

It can be as simple as identifying the opportunity for a new channel – for example, starting direct sales to customers, that will exist as a complement to your sales through other service or product providers.

Darren Dahl , in his article How to Develop a Business Growth strategy , cites Apple’s online move in adding its retail division, as a reinforcing example. He says: ‘When Apple added its retail division, it was also adopting an alternative channel strategy. Using the internet as a means for your customers to access your products or services in a new way, such as adopting a rental model or software as a service, is another alternative channel strategy.’

Entrepreneur Keith McFarland , in his book The Breakthrough Company , again cites Apple as a pioneering example of new market and new product infiltration for growth, after introducing the iPod. He says: ‘What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more customers to the computers Apple offered’.

As your growth strategy consultant, Destined will help identify potential acquisitions within new markets, channels, or products, so you can choose the acquisition strategy that matches your growth goals.