The Pros And Cons Of Microsoft's Acquisition Of Linkedin

Great Essays
In June of this year, Microsoft acquired the world’s largest professional network, LinkedIn for an estimated $26.2 Billion. This is the largest acquisition to date for Microsoft, and they hope that it will greatly benefit both companies (who have both been struggling recently). One of the main advantages of this acquisition is the integration of LinkedIn’s professional network with Microsoft’s Office suite. This would be particularly beneficial if for example you had a meeting set in your calendar using Microsoft’s Outlook, and could directly view LinkedIn’s network to view who you were meeting with, what company they work for, what skills/certifications they hold, etc. Also, LinkedIn’s recent acquisition of Lynda.com (a network of training videos) would be extremely beneficial if for example, a user could be using Microsoft Word or Excel, and easily …show more content…
This is particularly true in Microsoft’s acquisition of LinkedIn. Both companies already have strong core competencies; LinkedIn’s network of 433 million users, as well as their ownership of the Lynda.com video tutorial library, and Microsoft’s 1.2 billion Office users. Most people in the business world use both of these platforms in some capacity so to integrate LinkedIn’s network and tutorial library into a program that most workers already use would be not only beneficial but would create a new core competency for both companies and also open up both companies to new market opportunities. The strategy most likely driving this acquisition is the gaining quick access to new technologies or complementary resources and capabilities. Microsoft and LinkedIn complement each’s other services greatly. Both companies have a similar mission centered on empowering people and

Related Documents

  • Improved Essays

    Eharmony Case

    • 594 Words
    • 3 Pages

    While expanding into multiple different new sectors to capture further overall market share may sound appealing, there are…

    • 594 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Creating a Vision Imagining and communicating a vision for an organization can be a difficult task, especially when the organization has recently undergone a significant change, as is the case with Yinscape and Yangsearch. Jick and Peiperl (2011) describe a good vision as being clear and concise, easily understandable, inspiring, challenging, centered around excellence, and tangible (p. 115). With that in mind, when developing a vision for Yinscape and Yangsearch, it is important to consider the strengths and weaknesses of each company and how they will complement each other post-merger, as well as the challenges the new company will face because of the merger. Among the biggest challenges facing Yinscape and Yangsearch is the fact that each company has a vastly different manner in which they operate.…

    • 759 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Chapter six focuses on the need to have a culture of discipline. A Good to Great Company, has self-disciplined employees that work within a structured framework yet has the freedom and responsibility to make decisions within the framework. These individuals are extremely self-disciplined and do not need managing, they are willing to go above and beyond to meet their requirements. This discipline is from within the individual not a directive from the leader.…

    • 845 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Discussion Questions Why did PepsiCo Russia invest in a new portal with social network capabilities? To learn what users expect of social sites, the project team looked at Facebook, Linkedln, Google+ we studied the user experience of the world’s best social networking sites, and combined it with the concepts of enterprise portals. 2 How can intranets help companies achieve their business objectives?…

    • 1423 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    The key problems that Ms. Jones may be facing in her new role as CEO of King Memorial Hospital are financial challenges which consist of government funding cuts, Medicare and Medicaid reimbursement issues, bad debt, decreasing inpatient volume, increasing costs for staff and supplies, and competition from other providers; health reform implementations consist of reducing operating costs, aligning provider and payer incentives, shifting to value-based purchasing, working with physicians more closely and regulatory/legislative uncertainty affecting strategic planning; governmental mandates consist of CMS audits, implementation of ICD-10 and CMS regulations; and patient safety, quality, and satisfaction which consist of engaging physicians in…

    • 1710 Words
    • 7 Pages
    Improved Essays
  • Decent Essays

    Merger and acquisitions make economic sense if the whole is worth more than the sum of its parts, or stated otherwise, if synergy exists. The surplus value of horizontal mergers can be attained by: economies of scale in production and distribution, access to new markets, having a combined maiden office, removal of inefficient management, greater financial possibilities and combined immaterial assets (patents, trademarks and licenses). Vertical mergers shorten the industrial chain and savings can be made in procurement, more efficient communication is possible, as well as production can be more focused to market developments. A definition of synergy formulated by Sirower (1997) is as follows: Synergy is the enhanced…

    • 184 Words
    • 1 Pages
    Decent Essays
  • Decent Essays

    Microsoft Office 365 is very popular with small business enterprises. For a minimal monthly price, companies get many benefits. It provides essential software like Word, Excel, PowerPoint etc as well as cloud services for storing emails and data. There is no added hardware needed nor any additional costs for working with Office tools. This is why millions of users rely on Office 365 every day.…

    • 648 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Over 50% of all Mergers and Acquisitions end in failure which begs the question as to what common mistakes do business owners seeking expansion make? Does being successful in on market directly mean you will be successful in another? Unfortunately, this is not the case and many business owners have experienced the harsh reality of entering new markets. It is key for all business owners to gather all the facts and extensively plan before making this type of critical decision. While business owners should stay inspired to grow and expand, being too hasty could have devastating results.…

    • 1055 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Betrayal and Competition Today's entrepreneurs consider technology as the holy grail of development and success. Any venture that an individual goes into today must include a revolutionary technological aspect if they are to succeed. Seeing as how this knowledge is common amongst entrepreneurs, an aspect of competition arises in the market. Ambition and passion for success override everything else in this business, as is evident in today’s tech world. For instance, Facebook, what is now a multibillion-dollar franchise, has born witness to partnerships and betrayals.…

    • 998 Words
    • 4 Pages
    Great Essays
  • Great Essays

    Good To Great Summary

    • 897 Words
    • 4 Pages

    Many profitable companies avoid adopting technology because it is trendy and does not represent the professional strategy that companies should use. What motivates great companies’ strategies in technology are relative to their prospective industries. Collins (2001) discussed “Those who turn good into great are motivated by a deep creative urge and need for excellence for its own sake” (2001, p.123). When Collins (2001) discusses technology as an accelerator, he defines how the growth and improvement of the companies progress in profits. Collins (2001) concept relates to the application of technology in finance as a money –making system.…

    • 897 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    Both of these nation-wide corporations are very important in most societies today. Target and Walmart come in handy for the lower class, middle class and upper…

    • 651 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    IT Doesn’t Matter In the article “IT Doesn’t Matter” by Nicholas Carr argues that as information technology power grows and it becomes more affordable and accessible to everyone, its strategic advantage and importance to companies diminishes. To gain more competitive advantage, companies will have to change the way they manage IT investments focusing on its risks more than its advantages. The author goes on to make his point by exposing railroads and electricity as an example leading to the conclusion that technology will help companies differentiate from other competitors until it becomes available and affordable to everyone calling it the “boom-to-bust cycle” that will continue as information technology keeps growing. Issues 1.…

    • 460 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Garlands explanation of ‘new experience’ is most likely the reason behind “The emergence of a ‘culture of control’” as described by Palmer wherein extreme measures are looked upon as “normal” to counter terrorism. He also talks about how community surveillance is creating a “culture of suspicion” (Palmer, 2011). Culture of a society is in a way directly responsible for the state’s policy on punishment. Often the various modes of punishment draw their sources from the culture of the society. David Garland calls “punishment a cultural artefact which embodies and expresses society’s cultural forms” (Garland, 1991).…

    • 962 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Related Diversification Disney over the years has built itself into a related diversification company. This essentially means that they have been able to expand their business and product lines into activities and industries that were similar to what they were currently offering. Some examples of this process would be the introduction of Disney theme parks for families to attend as well as the addition of Disney Channel in 1983. These two different market segments are good examples of related diversification because they make Disney original business, the production of animated children movies, easier to deliver to their target market.…

    • 751 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Before we delve into the analysis of the eBay and PayPal demerger we first take a look at the different types of Mergers and in which category did eBay and PayPal merger fall into. We will also look into as to what was the acquisition motive, what led to the demerger and whether the synergies were attained or not. Merger is an amalgamation of 2 companies such that one company retains its corporate existence and the other one loses it corporate existence. The survivor company inherits the liabilities and assets of the other one. In effect one company completely absorbs the other one and assumes all the privileges and liabilities of the merged corporation.…

    • 1797 Words
    • 8 Pages
    Great Essays