Business is war: Jack Tramiel’s secret to conquering Silicon Valley StartupSmart Vertical integration is where you grow your company by buying or starting a number of businesses along the same supply chain in one industry at different stages of…
Business might indeed be war, but in many cases bridge-building assists in the process of the ultimate conquest.
As a firm believer in vertical integration (a company buyer its customer or its supplier) and in thereby becoming a combined and more self-sufficient entity, both larger, and more powerful with certain expenses redundancies to be eliminated to assist in boosting combined profitability, I have found that it’s much more important to befriend and negotiate [sometimes that feels like war] with a prospective acquiree company and its management, usually on several levels, in order to "educate" it regarding the advantages to its best longer-term interests, such that it comes along as a willing and smiling captive instead of utilizing any other, more hostile strategy, which would be a secondary choice.
The idea is to conduct the war utilizing intelligence (informational), diplomacy, education and negotiation in such a manner that your target never even knows that any war was occurring.
As the late lawyer (for the famous O.J. Simpson murder trial) Johnny Cochran might have said: "If you want to agressively integrate, you must educate and negotiate."
-Douglas E. Castle
See on www.startupsmart.com.au
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