Why Facebook Acquired Whatsapp Essay Example | Topics and Well Written Essays - 1750 words - 1

Why Facebook Acquired Whatsapp - Essay Example Facebook and WhatsApp are among the main internet based life stages in the advanced world. The two internet based life have a noteworthy number of clients that each represent a danger to another most definitely. In contrast with other internet based life that have been in presence before the development of WhatsApp, Facebook was commanding the market with the most elevated number of clients. With the happening to WhatsApp in the online life showcase, it heightened the fruition to a point where Facebook selected to obtain it. Â Apart from the exorbitant rivalry in the web based life showcase achieved by Whatsapp application, there are numerous different approaches to legitimize the obtaining of Whatsapp by Facebook. Much the same as in different types of business, one business my either converge with another or completely secure it relying upon the business condition the two of them face. As per concentrates by Ireland, Hoskisson and Hitt (2012 p, 133), one business may procure another so as to expand its development, gain showcase power, oversee chances and lessen costs. According to such procurement reasons, Facebook proprietors made the transition to gain Whatsapp so as to expand its development in the online networking market. Gaining Whatsapp, which is a solid contender, would likewise help Facebook deal with the danger of end from business and cut expenses of activity, for example, promoting. The executives of such factors would in this way lead to an expansion in the market power by Facebook. Â In contemplates directed by Frankel (2011 p.22), he takes note of that, among the fundamental reasons why one business may obtain another incorporate clients and piece of the overall industry. One business might need to assume control over the clients of a contending business and progressively assume control over the piece of the pie.