Secret Sauce for M&A Success

Big Merger & Acquisitions are ubiquitous even in times of economic difficulties. Be it the acquisition of Wyeth by Pfizer Inc for $ 64.5 Billion or Rio Tinto’s acquisition by the Australian mining behemoth, BHP Billiton for $58 billion, M&A deals are part and parcel of the corporate strategy to grow at breakneck pace as companies look to grow inorganically. Almost 60% of all M&A’s fail. Here in this article, I try to dig deep to understand the reasons behind such a high failure rate and unearth the main factors required for an M&A to succeed. Continue reading

Google Plus: A Brief Insight

Google Inc. launched Google+ on June 28, 2011 in an invite-only “Beta testing” phase . Users were then allowed to invite their friends and to create their accounts. The following day, this policy was dropped due to an ‘insane demand for accounts’ (Shaer, Matthew). Google announced on July 14th, 2011 that Google Plus had reached ten million users just two weeks after its limited trial phase . After four weeks, it had reached 25 million. Google’s biggest market was the US, followed then by India (Google+ Draws). Larry Page then declared that the service had reached 40 million users in October 2011. Males have been the majority of early adopters of Google+ (71.24%). The dominant age range is between 25 and 34. A survey estimates 13% of US adults have joined Google Plus and is projected to have 22% of US adults in a year.

Five Reasons Why Google+ Failed
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Nespresso – What else?

How the luxury brand Nespresso managed to tie an impressive number of over 10 million customers with a concept of club membership and its “belonging to an elite group” approach.

Launched in 1986, Nespresso is the worldwide pioneer and market leader in high-quality portioned coffee offering innovative coffee machines and 16 flavours of “Grand Cru” capsules. It is an autonomous global business unit of Nestlé, the world’s largest consumer goods company. Nespresso caters to both private consumers and the business segment. The latter generates the lion’s share of Nespresso’s turnover and has grown impressively. With its 20% annual growth rate and double-digit sales increases in world markets; Nespresso is Nestlé’s fastest growing operating unit. It also belongs to Nestlé’s famous billion dollar brands with a turnover of CHF 3.2 billion in 2010. Continue reading

Singapore Airlines, A Great Way To Fly

The success of an intangible service, relies heavily on its ability to make  an emotional bond with its customers.  Each moment of truth creates an experience that enhances the relationship and brings about loyalty in the customers. Singapore Airlines (SIA), the world’s second largest airline based on market capitalisation, has been successful in delivering an excellent service and in creating an exceptional experience for its customers throughout their journeys.  Continue reading

CRM in the Tourism Industry – The case of Four Seasons Hotels

Customer Relationship Management, or “CRM”, is one of the most important topics in the world of business. Its effects and dimensions simply cannot be denied. Without proper customer relationship management, there is no way to attract and retain customers to the business and therefore to be profitable.

Today, especially in the Hotel industry, CRM is crucial. The hotel industry is facing an increasingly competitive market that pushes the hotels to have a greater need to differentiate for their customers. Hotels need to have a deep knowledge of their customers’ needs, behavior, and preferences to be aware of the ways in which their hospitality services will be delivered. The purpose is to create value and therefore, stimulate customer retention and loyalty. In other words, they need create an exceptional experience adjusted to their customers’ needs to maintain the company’s long-term success; and that is exactly what Four Season Hotels and Resorts do. Continue reading

Zalando – A CRM Success Story

Zalando GmbH, was founded by David Schneider, and Robert Gentz, in 2008. The company engages in the online retail of apparel and shoes and is based in Berlin, Germany.  It is one of the most conspicuous and likewise mysterious start-ups in Germany.

Founded only three years ago, Zalando has become the market leader, mainly due to operational excellence; and partly thanks to fancy television advertising in the online shoe retail market. Revenues in 2010 were 160 Million Euros and are expected to increase at least threefold in 2011.

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Private Equity in Emerging Markets

Private Equity (henceforth PE) is a vital component of any economy. PE has been integral to the growth of some very famous companies in recent decades; these companies include Federal Express (now FedEx), Oracle, Intel, Apple Computer (now Apple). The asset class provides the opportunity for entrepreneurs the asses to capital, and in return PE firms can make significant returns for shareholders of their investment fund. Continue reading