Successful companies have a history of making acquisitions. The act of acquiring companies by big players in the industry has its reasons associated. It is either to dilute the competition posed by a certain player or to gain access to the wonderful product/service a company (one that is acquired) possesses. Successful strategy is an investment that can either be catastrophic or may take a lifetime to reached the initial projected ROI. As doing business holds equal chances of meeting success or approaching failure, companies which have been acquiring players similar to them also have a history to be successful. However, it has costed them tons and loads of money.
Nowadays. we live in an age where digital media has revolutionized business and a simple nobody has been granted rights to come up with a breathtaking service and compete directly with a giant. There is substantial evidence to support this claim. Take the example of Google. Launching in 1997, it took a very short time to become the widely known search engine worldwide, debunking Yahoo as the market leader in search arena. The outburst of media has made companies more vigilant which keep their eyeballs open to assess competition in order to stay on top. They also exercise diverse strategies to retain a competitive advantage which is so dear to them.
Acquisition of entire companies can be a hectic process. It involves plenty of resource investment. Now, to combat the challenge of competition, Facebook has exercised a strategy that is successful, cost effective and productive in the long term. Instead of acquiring companies, Facebook has started to acquire product teams behind a successful product. Over the weekend, allthingsd.com reported that Facebook picked up the Spool team, the same team which set standards within mobile social bookmarking. Spool stated that it will be shutting down its service and will follow its vision “to make content easy to consume on a mobile device”. It is a move by Facebook to get access to the expertise of the mobile software development at Spool and cash it in its own backyard.
Facebook has been facing a hard time in the mobile sphere and is yet to come up with a strategy which allows it to excel in terms of advertising and content sharing. It is critical to Facebook as content consumption across mobile is increasing and Facebook is severely challenged to monetize this channel.
With the help of the Spool software development team, it remains to be seen if Facebook will thrive in mobile. However, what has to be acknowledged is Facebook’s strategic vision. It has devised a way to attract top-tier professionals to its premises. This is not only cost-effective with respect to acquiring entire companies but it also allows it to get the expertise of successful professionals within the field in which it operates.