Since the year 2003, there has been a strong surge in the e-Business industry with many successful startups been formed in North America, Europe, China and India. At the same time, a stronger consolidation trend in the e-Business industry is observable in all regions. The number of merger and acquisition deals in the international e-Business industry has increased sharply since 2005 by 15%. This book presents and analyzes the significant mergers, acquisitions, and cooperations that were consummated in the e-Business industry between the year 2005 and the first quarter of 2007. It looks at the impact of mergers, acquisitions, and cooperations on the e-Business industry, and assesses the deals in the stated time period by analyzing the relationship between mergers, acquisitions, cooperations, market share, and competitive advantage to ascertain the strategic value that companies attain from such activities. The book is focused on e-Business companies such as Google, Yahoo, MSN, YouTube, MySpace, Facebook, Photobucket, Studiverzeichnis, Skype, Xing, Bebo, Last.fm, Gumtree, Kijiji, Joost, Tradera, Alibaba, Taobao, Xiaonei, Tom Online, etc. The book is written for all top managers and decision makers in the e-Business industry, e-Business companies, venture capital companies, e-Business Startup associations, researchers, and potential e-Business entrepreneurs.
Contents
1. Introduction
1.1. Focus of the Book
1.2. Structure of the Book
2. International Mergers & Acquisitions, Cooperations and Networks in Business Administration Theory
2.1. Mergers & Acquisitions
2.1.1. Definitions, Characteristics, and the Concept of M&A
2.1.2. Concept of Synergy as a Main Motive for M&A—Other Motives
2.1.3. Structure of an M&A Process
2.1.4. Legal Framework—Regulatory Considerations
2.1.5. Financial Valuation in M&A
2.1.6. Key Success Factors in M&A
2.2. Cooperations
2.2.1. Definitions and Forms of Cooperative Arrangements
2.2.2. Theoretical Foundations for the Formation of Cooperations
2.2.3. Goals, Motives—Chances and Risks
2.2.4. Role of the Factors Power, Trust and Mistrust
2.2.5. Prerequisites for the Formation of a Cooperation
2.3. Strategic Alliances
2.3.1. Definitions, Characteristics, and Types of Strategic Alliances
2.3.2. Competitive Advantage and Value Creation in an Alliance
2.4. Joint Ventures
2.5. Networks
2.5.1. Definitions, Characteristics, and Types of Networks
2.5.2. Virtual Network
2.6. e-Business
2.6.1. Definitions—Market and Transaction Categories in e-Business
2.6.2. Components of an e-Business Model and e-Business Model Evaluation
2.6.3. Value Shop and the three Generic Strategies in e-Business
2.6.4. e-Business and the Creative Destruction Theory
3. Mergers & Acquisitions, Strategic Alliances, Joint Ventures and Networks in the International e-Business Industry
3.1. Merger & Acquisition Activities
3.1.1. e-Business M&A Activities in the United States
3.1.2. e-Business M&A Activities in Europe
3.1.3. e-Business M&A Activities in China
3.2. Strategic Alliance Activities
3.2.1. Strategic Alliance Activities in the United States
3.2.2. Cross-Border Strategic Alliance Activities
3.3. Joint Venture Activities
3.4. Network Activities
4. Strategic Analysis of the Mergers & Acquisitions, Strategic Alliances, Joint Ventures and Networks
4.1. Function of M&A in the e-Business Industry
4.2. Growth and Structure of the Online Advertising Market in U.S., Europe and China
4.3. Future Trends in the e-Business Industry
4.4. Google’s Winning Strategy over Yahoo and MSN
4.5. Strategic Value of YouTube for Google
4.6. Benefits of MySpace and Photobucket for News Corporation
4.7. Strategic Value of Skype for eBay
4.8. Right Media and Flickr Synergies for Yahoo
4.9. Strategic Value of Studiverzeichnis for Holtzbrinck, Germany
4.10. Strategy Recommendation for Microsoft’s Top Management
5. Summary and Conclusion
Research Objectives and Themes
The thesis aims to analyze the significant mergers, acquisitions, and cooperative arrangements consummated in the international e-Business industry between 2005 and the first quarter of 2007, assessing their impact on industry concentration, market share, and competitive advantage.
- Strategic role of Mergers & Acquisitions (M&A) in e-Business growth.
- Theoretical frameworks for cooperation, strategic alliances, and networks.
- Analysis of e-Business models and their strategic evaluation.
- Empirical review of M&A and alliance activities in the U.S., Europe, and China.
- Strategic analysis of industry consolidation and competitive dynamics.
Excerpt from the Book
2.1.1. Definitions, Characteristics, and the Concept of M&A
Merger and acquisition activities are nowadays a common phenomenon in many industries. Numerous M&A deals in diverse industries are reported in press releases every week. M&A activities change market structures, market share, and the depth of competition in a market. The amount of money at risk, the volume of the deals that are closed, and the prevalence of M&A across all industries in almost all regions in the world, gives M&A its eminent role in business administration theory.
In general, the quest for growth in a company can be realized with either one of the two growth strategies, namely organic or inorganic growth strategy. Organic growth strategy, also called “internal growth strategy”, refers to the growth of revenue, market share, and the size of a company independently without acquiring or cooperating with another company. Inorganic growth strategy, sometimes called “external growth strategy”, is the growth of a company through cooperation or concentration or both. In recent years the management of many companies turns to external instead of internal growth strategies to demonstrate growth due to time and resource disadvantages over competitors and ostensible synergies they see between other companies and their own. External growth strategy can be subdivided into cooperation and concentration based on the binding intensity between the companies involved. Binding intensity measures the level at which the resources, actions, and autonomy of decision of a company are restricted, due to a contractual arrangement with another company.
Summary of Chapters
1. Introduction: Outlines the scope of the thesis, focusing on e-Business industry developments, consolidation trends, and the analysis of M&A and cooperative agreements between 2005 and 2007.
2. International Mergers & Acquisitions, Cooperations and Networks in Business Administration Theory: Provides the theoretical foundation by examining M&A definitions, cooperative types like strategic alliances and networks, and e-Business model components and evaluation frameworks.
3. Mergers & Acquisitions, Strategic Alliances, Joint Ventures and Networks in the International e-Business Industry: Presents empirical data on significant M&A, strategic alliance, joint venture, and network activities in the United States, Europe, and China.
4. Strategic Analysis of the Mergers & Acquisitions, Strategic Alliances, Joint Ventures and Networks: Conducts a strategic analysis of key deals, evaluates M&A strategies of major players like Google and Yahoo, and provides strategic recommendations for Microsoft.
5. Summary and Conclusion: Summarizes the study’s findings regarding the importance of market focus, the "Google factor" in acquisitions, and the role of innovation and synergy in e-Business.
Keywords
Mergers & Acquisitions, M&A, e-Business, Strategic Alliances, Joint Ventures, Networks, Synergy, Competitive Advantage, Online Advertising, Market Concentration, Business Models, Value Shop, Creative Destruction, Post-Merger Integration, Venture Capital.
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis explores the landscape of mergers, acquisitions, and cooperative arrangements (such as strategic alliances and networks) within the international e-Business industry between 2005 and 2007.
What are the central themes of the work?
The research centers on identifying strategic drivers for industry consolidation, examining the theoretical frameworks for inter-firm cooperation, and analyzing the impact of these activities on competitive advantage and market dominance.
What is the research goal?
The goal is to assess the strategic value companies attain through M&A and cooperative activities by analyzing the relationship between deal types, market share, and resulting competitive positioning.
Which scientific methods are employed?
The author uses a literature-based theoretical approach combined with an empirical analysis of industry-specific transaction data to evaluate strategic outcomes.
What does the main body of the paper cover?
It covers business administration theories of growth, detailed definitions and processes of M&A and various forms of cooperation, as well as an empirical overview of deals in the U.S., Europe, and China.
Which keywords characterize the work?
Key terms include M&A, e-Business, strategic alliances, synergies, competitive advantage, market concentration, and value creation in the digital economy.
How does the author characterize Google's M&A strategy?
The author identifies a "superior" M&A style for Google, emphasizing its ability to acquire trendsetting, market-dominant targets to maintain and widen its lead in search and advertising.
What recommendation is provided for Microsoft?
Given its position as a distant third in online advertising, the author argues that organic growth is insufficient and recommends that Microsoft considers the acquisition of Yahoo Inc. to effectively compete with Google.
- Citar trabajo
- Michael Jurgen Garbade (Autor), 2007, International Mergers & Acquisitions, Cooperations and Networks in the e-Business Industry , Múnich, GRIN Verlag, https://www.grin.com/document/120998
