In the tech sector, some companies have recorded outsized growth margins, while others have stalled, with much lower growth rates. Amazon and Google certainly belong to the former category. But all this is not because of market share, product stage, deal activity or even company size. This is because of their approach towards value creation. That is why such companies are known as “market makers”. In technology, these are those companies that create markets. They focus heavily on business research and development, but also strike the right mergers and acquisitions. They forge deals that will assemble success. In Google’s case, the acquisitions of Applied Semantics in 2003 and of Android in 2005 are examples of such game- changing deals. Amazon had similar success in acquiring Zappos in 2009. While business innovations are a part of their game, they also have a culture of reinvention as they understand that scaling up is what really matters, when it comes to business success.

Source:https://www.strategy-business.com/article/How-Tech-Market-Makers-Build-Value?gko=4d034

Uploaded Date:07 January 2019