Paragon Tools

Topics: Problem solving, Want, Customer service Pages: 3 (948 words) Published: March 18, 2012
Travis Robinson
Strategic Management in Dynamic Environments
Colorado Technical University
Prof: Mathew Willard
Growing for Broke
1.) Why might Paragon Tool want to pursue acquisition of MonitorRobotics? What are the associated risks? Paragon Tool would want to pursue the acquisition of MonitorRobotics because it would give them the ability to troubleshoot their own products out in the field. If Paragon Tool had a tool go down that a consumer had purchased 5 years back then MonitorRobotics would offer the ability to go out and fix and maintain the machine. The acquisition would give Paragon Tool the services they need to maintain their own tools in house and it would give them the departments necessary to keep up with the competition that already have the technology and services available to their customers. A major risk involved would be the fact that Paragon Tool is not making substantial amounts of revenue yet and is not being recognized by Wall street as a major player in the tool business. Another risk is the fact that all of the competition out there already has the software and departments in place to handle maintaining and fixing machines that are already out there. To grow as a company and to build a bottom line the Paragon Tool company needs to make a decision on acquiring the MonitorRobotics company to handle their in field trouble shooting or not. Even though the competition already has the departments at their disposal when consumers go to buy the competitions products the prices are higher given the fact that they already have the trouble shooting departments in place. If Paragon Tool did not acquire the MonitorRobotics then the prices for the products would be lower and more competitive. 2.) Are there other options for growth that Paragon Tool should consider? I think that Paragon Tool should think about the consumers who are buying their products. People who buy tools are able to build their own tools to adapt to...
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