Ansell Condoms Case Study Essay

Question 2 What ar the pros and cons for Ansell acquiring a atomic sum 63an competitor? In your opinion, is it a good root word? ProsAnsell forget be able to get a greater share of the mart in Europe. Acquiring a new company in Europe volition help to build their portfolio. They should be able to amplification their number of recognisable brands. Ansell will be able to acquire the new companies breathing contracts and contacts. It will help to create a reduction of overcapacity in the industry. outgrowth sales/revenue.ConsIt was mentioned that the companies that Ansell are thinking about taking over are in some financial difficulty at the moment so Ansell will deliver to take on that difficulty. There is an increased interchange of job cuts.It will be hard for Ansell so see all told of the hidden liabilities the company may possess. Ansell will more than likely have to pay goodwill for the acquisition.ConclusionOverall in my opinion it would be a good idea for Ansell to tr y and acquire a European competitor because although there is some financial risk and it could be a difficult process I think that the pros that I mentioned above will outweigh the potential cons. Ansell will need to get a dodge in place to make sure that the takeover goes as smoothly as possible.Learning Points* Condom market is extremely competitiveThis campaign study shows us that the condom market is extremely competitive with atomic number 23 main companies competing with each other and a large number of littler companies continually trying to gain a greater market share.* acquirement of European competitor good for AnsellIt would be a good idea for Ansell to take over one of their smaller European competitors to try and increase their market share and increase their number of recognisable brands around the world.