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Case Study: Market Integration Management Of Post-Acquisition

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3. Market integration management of post-acquisition
3.1. Macro environment for the market integration
After acquisition, market integration for companies has become significant for their final success. In order to achieve acquisition’s motive, acquiring firms have to consider the element of international marketing environment. Doole and Lowe (2008) indicate that the aspects of social/cultural, legal, economic, political and technological should be considered when the firms enter into international marketing.

The social and cultural factors on the international marketing are huge (Doole & Lowe, 2008) and difficult to evaluate (Lancaster & Reynolds, 2005). The customers’ perceptions and patterns of buying behaviour are all affected by different …show more content…

Therefore, when the firm intends to enter a new market, it must clearly understand the government’s attitude to business and which the government allows the firm to operate (Doole & Lowe, 2008).

Technology is a macro-environmental variable that influences business in international marketing (Lancaster & Reynolds, 2005). It also affects the development of products with research. The ability to gather a collection of data on markets, control the management effectively and carry out the business function internationally are significant in the marketing process, and can be improved with the advancement of electronic communications (Doole & Lowe, 2008).

3.2. Market segmentations
After knowing the macro environment well, it is easier for the acquiring company to divide the market segments and choose the proper segmentations. Segmentation is a process involving dividing market into explicit segments, where customers behave in the same way or have the same demands (Bennett, 1995). For most firms, having segmentations is a better way to discover potential customers and satisfy their needs (Market segmentation, 2001). Segmentation based in consumer markets can be divided into the following …show more content…

Tangible product gaps involve the weakness of relative brands in the area of product dimensions, such as scale, technology, bearing capacity and some physical characteristics demanded by customers. If the new company after acquisition keeps on using the separate brands, simply using the acquired company’s facility to compete against the acquiring company’ product, gaps will produced more or less. If the new company combines the separated brands into one, then it will produce joint benefits for the product. Gaps can also emerge in the situation that the acquiring company has specialized requirements for the producing process or the facility, and nevertheless the acquired company has limitations of product capacity, the final products produced by two companies could still have gaps (Weber & Dholakia, 2000). No matter if the acquisitioned company wants to separate the brands or combine them into one during the integration, it all depends on the product positioning and its market

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