The three altitudes of leadership insead knowledge. A merger can enable a firm to increase in size and gain from many of these factors. Foster, coauthor of creative destruction and author of innovation. The insight is the application of this lifecycle to the management of technology and innovation. Foster 1986, hardcover at the best online prices at ebay. Several companies manage the technological changes, by attacking themselves, forming jointventures, acquiring another company. Creative destruction whips through corporate america innosight. The books intent is to describe how companies can manage innovation by managing technological discontinuities. Advantages and disadvantages of mergers and acquisitions. However, in a vertical merger, there could still be financial and riskbearing economies. When businesses merge, it is often to achieve economies of scale.
Has the attackers advantage by ram charan been sitting on your reading list. There are many useful points in this text, several concepts that are still relevant, and a few things that have changed since it. I propose a categorization of such motives based on the residual. Another advantage of mergers and acquisitions is that if company is buying company in the same industry then it is effectively reducing the competition and if competition is reduced then company in turn will be incurring less expenditure on advertisement and publicity and more on research and development of products leading to production of better. Note, a vertical merger would have less potential economies of scale than a horizontal merger e. The attacker has an advantage, because of its superior productivity, that allow inferior costs of production, therefore lower prices long term. Although the book is quite old, its very interesting and i recommend it. A technological innovation that turns an industry insideout is a classic case of.