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Category: Business and Industry
Date Submitted: 02/21/2015 09:53 AM
FLIPKART-MYNTRA
ACQUISITION
CONTENTS
Merger and Acquisitions
E-commerce Industry in India
E-business Model
Flipkart Pvt Ltd
Myntra.com
Flipkart-Myntra
Conclusion
Merger & Acquisitions
Both these terms are aspects of corporate finance, strategic management and companies dealing
with buying, selling and combining two or more different companies and similar entities that can help
a company grow at a higher rate in its existing industry or a new industry or location, without
creating a subsidiary to run the added operations. M&A result in restructuring of an
organization with an aim to increase growth rapidly. The process is very complex, with many
dimensions influencing the outcome. Whether the purchase of a company is perceived as being a
"friendly" or a "hostile" one depends significantly on how the proposed acquisition is communicated
to and perceived by the target company's board of directors, employees and shareholders.
In an acquisition, both companies may continue to exist. However, in a merger he acquiring
company continues to do business whereas the acquired company gets integrated into the acquiring
company and thus ceases to exist after the merger. As a result of either merger or acquisition,
companies get access to new markets and industries that were previously unaccessible due to cost,
regulations or indirect barriers like the ability to create resources such as capital, knowledge and
labor. Challenges come from foreign competitors entering the domestic markets and from local
competitors reducing their product or service costs through global sourcing, moving operations
offshore or gaining economies of scale by venturing into new markets. Globalization requires firms
to become more streamlined and efficient while simultaneously extending the geographic reach of
their operations.
Thorough Planning and execution are essential for a successful strategic alliance. Integration
is reached only after mapping the processes...