National institute of fashion technology, Bangalore

Apples Acquisition of Siri Inc.

Done By: Ankit.P.Bhandari Manuraj Kumar Kumar Dipti Sarkar Vatsal Pant B.Ftech 6th semester

Submitted to: Mr. Joseph Regy

About the two companies. . .

Apple Inc is an American multinational corporation headquartered in Cupertino, California.
Designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Siri is an intelligent personal assistant and knowledge navigator which works as an application for Apple's iOS. The application uses a natural language user interface to answer questions, make recommendations, and perform actions by delegating requests to a set of Web services.

April 27, 2010 : Siri Inc. was acquired by Apple Inc , for an undisclosed sum.

Definition:

Acquisition refers to one company buying out another to combine the bought entity within itself. With acquisition, one firm takes over another and establishes its power as the single owner. Generally, the firm which takes over is the bigger and stronger one. The relatively less powerful, smaller firm loses its existence, and the firm taking over, runs the whole business with its own identity. Unfriendly deal, where the stronger firm swallows the target firm, even when the target company is not willing to be purchased, then the process is labelled as acquisition

Acquisition:
Unfriendly deal, where the stronger firm swallows the target firm, even when the target company is not willing to be purchased, then the process is labelled as acquisition

Why was the Acquisition made?

Increased market power Overcome entry barriers Cost of new product development Increased speed to market

Lower risk compared to developing new products

Increased diversification

Avoid excessive competition

Why was the Acquisition made?

Economies of large scale business Adoption of modern technology Lack of technical and managerial talent

Effects of trade cycles

Desire to enjoy monopoly power

Patent rights
Personal ambition

Why Apple chose acquisition v/s some other form of growth?

Apple ended up buying Siri because of its ability to recognize context. There are plenty of voice assistant technologies on the market, including Googles own Voice Actions for Android. Siri separated itself from the competition with its ability to correlate data. In a perfect world, Siri would be able to reserve your movie tickets, tell you the latest game scores, post to social networks, etc. Theres a good chance that Siri access could be opened up to other devices, including the Mac, in the future. Siri lets you use your voice to send messages, schedule meetings, place phone calls, and more.Ask Siri to do things just by talking the way you talk. Siri is so easy to use and does so much, youll keep finding more and more ways to use it.

why did the target agreed to be acquired?

Siri needed an established, trusted company like Apple to back its technology.

Brand Image- the best way Siri could have set its image in the market would have been through its acquisition with apple. With the help of apple brand, siri can easily expand globally as apple has already outclassed almost all the companies worldwide.

why this acquisition interesting to study?

This acquisition added a great deal of value to both Apple Inc and Siri Inc. Both the companies differ in their strategies, policies, ideas etc ,hence through this acquisition they could sort out their differences.

Does the acquirer has parenting advantage?

BMW has already said that it wants to integrate Siri with its future automobiles. Siri lets you use your voice to send messages, schedule meetings, place phone calls, and more. Ask Siri to do things just by talking the way you talk. Siri is so easy to use and does so much, youll keep finding more and more ways to use it. Talk to Siri as you would to a person. Say something like Tell my wife Im running late .Siri not only understands what you say, its smart enough to know what you mean If you like FaceTime or Siri, then your only alternative is to stay with Apple to have access to them. On the other hand, if you are a fan of Google Maps or YouTube, you can still stay with Apple and enjoy the fantastic apps courtesy of Google.

what are the sources of parenting advantage if any ?

what is the potential value creation in this deal?

Imagine a world in which all kinds of hardware and software integrate with Siri. Your Mac becomes controlled by your voice. Your car becomes an extension of what you can do with Siri on your iPhone.

Siri lets you use your voice to send messages, schedule meetings, place phone calls, and more.* Ask Siri to do things just by talking the way you talk. Siri is so easy to use and does so much, youll keep finding more and more ways to use it.

what is the potential value creation in this deal?

Apple is working with car manufacturers to integrate Siri into select voice control systems. Through the voice command button on your steering wheel, youll be able to ask Siri questions without taking your eyes off the road. To minimize distractions even more, your iOS devices screen wont light up. With the Eyes Free feature, ask Siri to call people, select and play music, hear and compose text messages, use Maps and get directions, read your notifications, find calendar information, add reminders, and more. Its just another way Siri helps you get things done, even when youre behind the wheel. At four million iPhones sold, the 4S has become Apples fastest-selling device. (date : 17/10/2011). The main difference between iphn 4s and any other iphn was the inclusion of siri in 4s .

what has been done so far in integrating the acquisition does it make sense to you ?
Yes . This successful acquisition makes sense. In this technological modern heritage; apple along with the siri software helps a person carrying a Smartphone in saving time. Time is precious at the moment ; technology can help us in a blink of a second . Then why not use this technology. Safety comes into the picture as well. As siri is about to be installed in cars as well.

If the acquisition is very new what would your focus be on for the integration and why?

what are the major pitfalls to expect in this particular acquisition?

If privacy and security rank high on your list of priorities, you may want to avoid requesting help from Apples Siri voice-controlled virtual assistant. IBM Chief Technology Officer Jeanette Horan .
Apples Siri is a security risk for anyone dealing with confidential information since the voice commands are sent to Apple for translation into text. Performance Siri works mostly in the cloud, so any latency or network disruption renders it useless.

Is this acquisition likely to enhance the acquirers competitive advantage how ?

In a perfect world, Siri would be able to reserve your movie tickets, tell you the latest game scores, post to social networks, etc. If you like FaceTime or Siri, then your only alternative is to stay with Apple to have access to them. On the other hand, if you are a fan of Google Maps or YouTube, you can still stay with Apple and enjoy the fantastic apps courtesy of Google.

Is this advantage sustainable. overall what is your assessment

of this acquisition ?

In a perfect world, Siri would be able to reserve your movie tickets, tell you the latest game scores, post to social networks, etc.
Safety comes into the picture as well. As siri is about to be installed in cars as well. This acquisition added a great deal of value to both Apple Inc and Siri Inc.

 OPEN FOR DISCUSSION . . .