1. Was buying Amersham a good idea? Why or why not?
We support the idea that GE Healthcare, which is one of the biggest conglomerates globally, took the right step in acquiring the business Amersham in order to expand the business and restructure its core business into becoming a global standardized business aiming to provide products that answers the needs of consumers in the market today. The following advantages below are what General Electric Health Care would gain after taking over Amersham in UK.
Expand its core business further: Since both companies are competent in different fields, GE has a competitive advantage in terms of technology that treats late stage disease; Amersham aims to focus on core competencies towards providing treatment before the disease occurs or during early stages. With combination of these two firms, GE could invent products aiming to diagnose disease at early stage, and help foresee treatments that best suit the disease occurring. GE Healthcare can expand their portfolio business further with strong competencies intact.
Eliminating Competitors: With Amersham as a growing company and acquiring many firms and merging with many IT firms, GE might see them as a threat in the future. However, being able to become one firm, we see that the business can work together and work hard on knowing what each other are good at in order to leverage their competencies and compete to become the largest company globally for health care products.
Growth in New Sector: With the emergence of new markets, especially in developing and emerging markets, GE can aim to supply product through their core implementation of COE or Center of Excellence, which the company has relocated itself to Britain which they feel they could invent technologies and ship parts for manufacturing at cheaper locations where they can be adapted and produced to different