What happens after the Large fish Swallows the Small fish?

A growth strategy of large companies, particularly in consumer products is to buy smaller firms in their sector. The acquisition rationale is to  obtain cost advantages and share marketing skills and access to larger market.But sometimes this is not the case. Two Cases in Point In the mid 90s two partners founded in California Scharffen Berger chocolate. The turnover grew with alarming speed and at a point caught the attention of Hershey, the famous American chocolate. Hershey promised  support the small company and even hired former owners as consultants. But on the contrary to its promises,  soon closed theScharffen Berger production plant and moved production to a Hershey unit. Slowly, the quality of  Scharffen Berger chocolate began to deteriorate. Godiva is an old Belgian chocolate acquired by Campbell Soup. Campbell devoted resources to Godiva and marketing skills and established it as one of the most successful brands in the U.S. with its own retail outlets. Campbell sold Godiva in 2007 to Ulker, the largest food company in Turkey. Several other  suitors, among them Hershey, made offers. In 2009,  Godiva announced new marketing initiatives . For the first time the chocolate will be available in  good American supermarkets. The Verdict: Sooner or later things change! O2ibm Visit this Open Forum