Terra Drone, a Japanese drone giant, acquires a significant stake in C4D Intel which is a leading innovator in the Australian industry. The Japanese company is making strides to expand its business empire by penetrating international markets. It recently moved into the European market, and there are many benefits to adopting the strategy.
The acquisition is an excellent achievement for the company concerning growth and development. When a company acquires another firm, its operations expand geographically, access to new or a different technology, and this helps it to increase its revenue. Mainly, every business aims to gain a significant market share which determines its profitability.
Through the acquisition of C4D Intel, Terra Drone is poised to grow. Diversification of products offered is another way of measuring the growth of the company. These two companies merging offer different products and they will make a one-stop shop for different customers. Customers are compelled to look further than the products they intend to buy when they visit the site of newly merged company.
Terra Drone hopes to capitalize on C4D’s vast clientele following the acquisition of this innovation giant. Interestingly, C4D Intel has extensive experience in infrastructure development as well as oil, mining, and gas. When the companies operate under the same brand name, there are also likely chances of increasing the customer base and share technology.
The two businesses will also benefit from the merger through reduction of operational costs. Marketing and advertising take up a significant amount of money and organizations cannot do without these two business concepts. In this particular case, the merged companies operate from the same budget for advertising which helps to lower their costs.
Other Benefits of Acquisition
A merger between the two companies is mutually beneficial in that they both benefit from each other. The acquisition of C4D Intel means that it gets the opportunity to leverage on Terra Drone’s extensive international network. In other words, the company gains access to global markets which will help it to expand its business.
C4D Intel also benefits from the experience of the Asian giant through access to state-of-the-art technology. Businesses currently rely on the quality of the models they use in their operations. Thus, Terra Drone also notes that the acquisition deal will demonstrate the company’s total commitment to the Australian market.
Source: C4D Intel Highway UAV Photogrammetric Survey
It seeks to tape the knowledge of local organizations in running their businesses. The company is also committed to fulfilling the needs of the major stakeholders in its operations. Business models in Asia and Australia significantly differ, but they can benefit from each other through globalization. Management practices, in particular, will benefit from the deal as the local people will provide guidance in running businesses effectively in Australia.
As part of the acquisition deal, C4D will change its name in the first quarter of 2019 to Terra Drone Australia. The strategy of acquisition helps a company to penetrate other international markets which may not be possible without the assistance of some other local company.
It may not be so easy for an Asian corporate to penetrate western markets and establish a successful business venture. In the same vein, western companies may also not easily penetrate Asian markets and do the same. Culture differences, as well as other factors between Eastern and Western countries, pose a challenge for corporations to set business in a foreign country.
Terra Drone Will Get Quick Recognition
In this case, Terra Drone will easily get acceptance in the Australian market following its acquisition of C4D Intel. The locals can quickly identify with the merged company following the involvement of a giant Australian company in the deal. It is easier for foreign companies to partner local ones that are already visible in the market.
The new company will also benefit significantly from better production and distribution channels in Australia. Terra Drone will use the established distribution channels already established by C4D Intel. The company does not necessarily need to develop new avenues of distributing its products and services but expanding the ones already existing.
The customers will immensely benefit from the merger between C4D Intel and Terra Drone. They will get access to new and innovative technologies that can enable them to conduct their business effectively. The transaction will also allow the customers to have access to a broader range of products and services.
On the other hand, the Australian business sector also stands to benefit from this particular deal. Improved innovative technology will improve the operations of various businesses. Terra Drone will bring cutting-edge technology that can help Australian companies to keep pace with the latest technological advancements. New information and communication technology determines the success or failure of business especially in global markets.
Source: C4D Intel 3D Reality Modelling
Exchange Of Knowledge And Skills
Under the deal, Terra Drone brings expert knowledge and skills in helping the companies in Australia to adopt innovative technology that improves safety. At the same time, the company gets the opportunity to establish itself as a force to reckon with in safety issues in the Australian market. The element of safety remains of concern to various companies, and they will get an opportunity to harness new technology that improves their operations.
Terra Drone also stands to benefit from the acquisition of qualified staff with knowledge of the Australian market. The employees have good management and other processes systems that suit the Australian business environment. The success of a foreign company in another country mainly depends on the quality of management that suits the interests of the targeted customers.
Terra Company will now provide LiDAR data acquisition technique based on UAV to the customers in Australia. The move is to complement photogrammetry services already on offer. The move will significantly improve the operations of the companies in Australia since they will adopt the latest technology in their activities.
However, for the acquisition to be a success, the two businesses involved should have complementary systems. C4D Intel specializes in infrastructure, mining, oil as well as gas industries and the aspect of safety is a top priority. Terra Drone believes that advanced technology can revolutionize the way of doing business in Australia.