Only recently, some rumours spread like wildfire which shook up the international tech world within a matter of seconds. Could Apple actually buy Netflix? We’re talking about two names which are not only big; but mammoth in their own domains and have become household names across the globe.
Even if Netflix is the new kid on the block; its popularity is soaring on a daily basis. It has captivated audiences in every country graced by its presence. And the widespread reach of Apple knows no bounds.
In the current scenario where brands and companies are coming up thick and fast; acquisitions have become too common an occurrence. Ultimately, the big fish eats all the other fish in the sea; this has been a norm since time immemorial. A unique idea isn’t enough anymore; you ought to have other parameters working for you as well like cost per acquisition, customer retention, financial backing, adaptability, solid internal staff, to name a few.
And the funny thing is; even if you manage to hit all the right chords; chances are that the juggernauts in your domain will take notice right away and give you an offer you can’t refuse. And no matter how much we wish to deny it; in the business world, everyone and everything has a price.
When we talk about premium sports shoes; which brands enter your headspace instantly? Nike and Adidas I bet. Now there are plenty of other good and reliable brands in the market; not many are aware of their existence. This is a common business thumb rule. For a particular domain, there just can’t be 10-15 big brands in the market selling the same products/services. This is why Apple’s acquisition of Netflix shouldn’t be that surprising.
Don’t we all agree with this? Right before WhatsApp was acquired by Facebook and Flipkart enveloped Myntra; who knew this would happen?
Its not as if Myntra wasn’t doing well or vice-versa. What do big brands have which no one else does? Loads and loads of money to spill! Raising your own quality standards is as important as keeping yourself well equipped with what’s happening around you.
Because one big move can change the course of the entire ballgame within a matter of seconds. And brands don’t necessarily have to be of the same domain. The overall aim is to capture the market by hook or by crook and the money will follow sooner rather than later.
Often you see small brands which are doing impeccably well in their local sector being acquired by superior names for gigantic sums. Hence, some bright minded individuals are now entering conventional domains simply on the premise of getting acquired.
Apple has a wide array of brands in its growing repertoire. After having successfully conquered the international smart phone, they’re constantly looking to spread their wings elsewhere. This is what constant innovation is all about - getting out of your comfort zone and realizing a brand’s value which others might deem unnecessary.