Business investors play an important role in the economy, determining the development and dynamics of markets. Market absorption is one of the strategies they often use to expand their influence and increase their profits. In this article, we will look at the various methods and strategies that business investors use to absorb and influence the market.
Definition of Market Absorption:
Market takeover is the process by which a company acquires control of another company or brand. This can occur through the purchase of stock, a merger of companies, or the acquisition of a business as a whole. Often business investors choose this strategy to increase their scale, occupy new markets, or gain access to new technology and know-how.
Key market takeover strategies:
(a) Mergers and Acquisitions: This is one of the most common methods of market absorption. Large companies may acquire or merge with smaller companies to strengthen their market position and expand their product or service offerings.
b) Share Purchase: Business investors can achieve control over companies by purchasing shares of these companies in the market. By increasing their shareholding, investors are able to influence the company’s decisions and direction.
c) Venture Capital Investment: Market takeover can also be done through venture capital investment. Investors put money and resources into new and promising projects in the hope of gaining a significant share of the profits and control over the company.
