Acquisition strategy and implementation approaches

Acquisition Strategy

MetLife and Cisco Acquisition Strategy

MetLife is a successful business with excellent cash flow. During the recession in 2008 MetLife was one of the few companies in the industry that did not need a government bailout. MetLife sells a wide range of insurance policies, ranging from individual policies, to automobile and motorcycle. The company also handles a range of financial transactions, such as mutual funds, annuities, money markets and banking. Cisco is one of the world leaders for information technology products. The company is a solid company that operates worldwide. Cisco is one of the companies that have shaped the form of the internet as we know it. Cisco's business structure has evolved over the years to meet the needs of the customers. The company has evolved from an enterprise and service provider solution company to addressing customer needs in many different segments such as consumers and commercial (Cisco, 2010). In this paper I will discuss MetLife's acquisition of Alico, and Cisco's acquisition of Intel, and how these acquisitions are used to strengthen market positions and gain competitive advantage.

Strength from Acquisition

The recent acquisition of ALICO is a significant opportunity for MetLife. ALICO has affiliations and locations in parts of the world that MetLife has not been able to capture. MetLife can now saturate other markets that ALICO have made available. This in an opportunity for MetLife to capture a new market, gain recognition and build a brand in areas of the world that MetLife have not been exposed to prior. The acquisition of ALICO is an incredible opportunity for MetLife to expand their services.

The organization is viewed by the stock market as a healthy, solid company that is growing. In the most recent quarterly report issued in early 2011, the company reported a profitable quarter and increase in shareholders wealth (Yahoo Finance, 2011). "With the acquisition of Alico complete, Metlife has become the premier global life insurance and employee benefit powerhouse" (Datamonitor, 2010). This acquisition has allowed MetLife to increase their market share and to ensure a competitive advantage. The acquisition of Alico has allowed MetLife to gain new market share, making them a giant in the industry. MetLife is now competing with the giants in the industry.