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This diversification calls for some boundaries for players in the industry, especially the ones that have access to enough money to spend on anything they desire. A

t is not surprising when Bidvest snaps up most companies, with their recent notable acquisition being an increase in their holding in Adcouple of companies seem to uncock Ingram. We are not astonderstand these ished because When Ford motor company was boundaries when it Bidvest has asserted looking to grow their reach be- comes to mergers itself as a giant contween the years of 1999 and and acquisitions. glomerate reporting 2001, they acquired companies When Ford motor revenue of R153.4bn and brands of their own kind in company was lookthat grew by 14.9% both Volvo and Land Rover. ing to grow their in financial year reach between the 2013. Bidvest is not the subject of years of 1999 and 2001, they actopic here. The technology indusquired companies and brands of try is, in a class of its own in their own kind in both Volvo and terms of diversification, which Land Rover. Another good examincludes engineering, science, ple is a South African company electronics etc. From the early Famous Brands whose acquisisteam engine automobiles to the tions show intentions of growth latest smart TV, we have come a within their sector, with their long way. most recent being the 70% stake

in Wakaberry. This is an effective and proven growth strategy to becoming an influential business but that does not necessarily mean that it will always work some went astray. We cannot say the same, for companies like Facebook and Google, whom one may say are experiencing an identity crisis, causing constant headaches for cautious investors. Some of these, and other similar acquisitions, have resulted in purely software companies moving into hardware products-Google’s acquisition of Motorola mobility in 2011-and vice versa-HP’s purchase of Bluestone software and others before that. Moreover, some just do not make sense like Facebook’s acquisition of Oculus VR Inc.


CIRCLE OF CONCERN MAGAZINE Circle of Concern Magazine 36

Issue 3 | June 2014


Circle of Concern Magazine


Circle of Concern Magazine