In times of crisis like today, companies do not always reach their goals and win new clients. In these moments, the entrepreneurs remain attentive to the expectations of their market of action and any sign of resumption, although subtle, is celebrated.
In times like these, to keep their organizations efficient, shareholders must keep in mind solid strategies for using minimum resources and meeting short- and long-term goals.
Some companies try to maintain their market through competitive prices, although these companies focus on managing their costs tooth and nail, it is inevitable that with the reduction of prices, their margin of market also retracts. Other companies prefer to keep their margin; however, they need to be subject to a smaller performing market.
Given this scenario, it is valid that managers evaluate the opportunity to compete in new markets using as growth strategy, for example, acquisitions through vertical, horizontal or diversification integrations.
The first step in evaluating an acquisition process is to identify a competitive advantage that makes acquiring a new business an efficient strategy to optimize profit margins, cost and to expand markets.
Through a vertical integration, it is possible to reduce costs significantly in the production process, from another perspective; through a horizontal integration, it is possible to achieve a considerable increase in the size and participation of the company in its market. If the diversification strategy is used, one can consider greater efficiency in its market, being a strategy to reduce costs with the unification of the plants.
In conclusion, regardless of the objectives set for an acquisition, it is elementary for the process to be delineated efficiently. A well-planned and diligently executed project will bring good opportunities and great results.