International Management III Case 7: Softbank Corporation: Internet and Web-Related Acquisitions, Market Expansion and Global Strategy in 2001/2002

Question 1: What are your views of Softbanks recent internet-related diversification and its applied science-based learnings? In dress to develop their competitiveness, the enterprises usually conduct industrial reformation. For dispersing the bump of the enterprise, expanding their business cooking stove and growth, or solving the perplexities in operation, the enterprises usually adopt diversify strategy. While operating, many aspects should be considered. Although diversification may set the enterprises grow, apply internal resources efficiently, abase risks and increase more economical profits; however it could not guarantee the success later on diversification as judge. When most enterprises proceed with diversification, the values they omit are often ms more than the ones they brook created. To achieve semipermanent growth, the Softbank started diversify into businesses that leave alone expand the revenues of existing businesses and developing unexampledborn b usinesses that will provide impudent sources of revenue in extension to the advertising revenues. In 2001, Softbank was split up into the following segments; IT-related distribution and e-commerce, monetary services, publishing and marketing, internet infrastructure, technology service and broadcast media. Softbanks net profit and technology acquisitions decrease into two categories. First, in the area of media and marketing, Softbank owns 70 percent of Ziff-Davis, Inc. Second, in the Internet, communications and technology sectors, Softbank has inverted in some of the assoil Internet brands.

These acquisitions have p laced Softbank among the top Internet and te! chnology players in the world. The classify believes that these types of diversification and acquisition will prove its operating base. To realize this goal, it is possible that the Group will have to incur additional expenses to employ new staff, expand and set up its facilities, and to carry out research and development. Moreover, it is anticipated that some time will be needed for these businesses to suffer contributing motionless revenues. Consequently, the Groups profitability may decline temporarily. In addition, there is... If you indirect request to get a full essay, order it on our website: OrderCustomPaper.com

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