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I think often times large companies purchase smaller ones because they cannot come up with new ideas on their own. Not that they are stupid but that the bureauc
by scottshea 13y ago
I think often times large companies purchase smaller ones because they cannot come up with new ideas on their own. Not that they are stupid but that the bureaucracy is too heavy for an idea to germinate into something big.
That same layer of bureaucracy and deadweight that keeps ideas from forming will also crush a new acquisition. The people at the large company are good at maintaining; not growing or inventing. Their nature fights new ideas and new methods.
- leoedin 13y agoDefinitely. The large company I work for talks and talks about innovation, but the truth is very little actually happens. The big flexibility that comes with a new company is what creates disruptive technologies. It's worth remembering that large companies don't always ruin their purchases. There will inevitably be a painful culture merging process after an acquisition (normally at the expense of the purchased company), but sometimes that process doesn't kill the purchased company. The resources and experience that a large company have can often take an almost-product the extra lengths required to be marketed.