Mergers and Acquisitions and Open Innovation as a Business Growth Strategy. The Mega Cases of Procter & Gamble and Unilever.

Abstract

Executive Summary

The central goal of this research paper is to analyze the determinants of choice among different business-growth strategies of multinational companies in the Fast-Moving Consumer Goods (FMCG) sector. This sector is a highly competitive and mature, which renders the growth of a business extremely challenging. In this sector, companies are required to develop and implement growth strategies not only to gain competitive advantage but also to survive. Most managers base their decisions to realize these growth strategies either internally, through internal development, innovation, or externally, through mergers and acquisitions, joint ventures, and strategic alliances. The primary objective of the present research is to explore the choice of companies belonging to the FMCG sector between two alternative growth strategies; i.e. growth through open innovation and growth through acquisition.