M&A

Assignment

Existing Product New Product

Product Development
Existing Market Penetration
J&J acquires Pfizer
Market

Market Development
New Market Diversification
IBM Acquires Kenexa

Case 1: Acquisition of Kenexa by IBM is a case of market development. Market development

strategy is best when the company’s core competency is related more to their product, rather than
customer experience. IBM aims at providing the existing improved product to a newer market
and customers. They have good understanding of their product and can efficiently adjust
themselves as per the new market demands.

Case 2: Acquisition of Pfizer by J&J is a case of product development. Product development

strategy is best when the company has a strong brand name and can efficiently create new
products for the same market. J&J would be entering its existing market with a new product,
making the market environment suitable for product development.