Evaluation of both companiesPresentation Transcript
APPLE AQUIRING3D SYSTEMSMERGERS & ACQUISITIONSJUNE, 2013BY RACHA ISMAIL, ISALINE CHARPENTIER, KIKI AMADI MEKOMAM & ANTHONY TERZIAN
What is Apple? Apple is a corporation founded in January 1977. It designs, manufactures and markets mobile communication andmedia devices. the company commercializes different services, software,networking solutions and third party digital content andapplications. The company recently acquired WiFiSlam, a Silicon Valley startupthat does mapping applications for Smartphones.
ORGANIZATIONAL STRUCTURE The company is one that thrives on secrecy, gives obsessiveattention to detail, and this approach is not conducive forfriendliness. Their culture is also referred to as tough as nails. In addition, theirculture is one of change, with the drive to outperform and succeedas their major objective. Their top down philosophy allows for quick responsiveness andresolution to situations without involving the corporate headquarters.
What is 3D SYSTEMS? 3D Systems Corporation is a holding company incorporated inDelaware and operates through several subsidiaries around theworld. They are the leading global providers of 3D content-2-print solutionsincluding 3D printers, print materials, on demand customservices, and 3D authoring solutions for professionals and consumers. They also provide scanners for a variety of medical and mechanicalX-ray film digital archiving. Their 3D printers can print almost anythingfrom personalized medical devices to functional airplane and carparts from individualized accessing to customized jewelry and toys.
3D PRINTING MODELS
ORGANIZATIONAL STRUCTURE They attract and develop experts who are passionate abouthelping their customers succeed. They identify and act on opportunities to create faster, simpleprocesses that enhance their ability to serve customers andmaintain competitive posture. They are highly motivated in committing and doing their jobs. They are guided by set of principles and values that cultivatesteamwork, entrepreneurial spirit, cross-functionality, interaction, andresponsibility.
Market Overview The world printing machinery and supplies industry is expected toexceed 21 Billion dollars by 2015 according to global industryanalysts. The market is driven by demand for digital color presses, specialtyprinters, and inkjet printers. The printing market has grown alongside expansion in the PCmarket, with many computer owners also owning printers. The printing industry has seen the pace of progress pick up due todigital technology.
3D SYSTEMS - SWOTSTRENGTHS1) their recurring sales output from print materialsand services revenue segments.2) they have a proven research and developmentdepartment and are able to produce newproducts to improve their addictive manufacturingportfolio3) they help cut customers cost by reducing theirproduction lines while increasing their output roleby enabling them produce single items quickly andcheap rather than export abroad for rare parts.WEAKNESSES1) their printers are very expensive to make which results in a highprice for the machines and their end use products.2) Objects will become a lot easy to copy, distribute, andpirate, thus making it easier to breach intellectual property laws.OPPORTUNITIES1)Their increasing demand from growth markets ofChina and India and 3D systems ability to speed updesign process will have a big impact on theprinting industry and may replace massmanufacturing.2) once the printers cost decrease and their speedincreases there will be a surge in demand andmanufacturers will look to adapt the technology,because 3D allows for the creation of parts inshapes that conventional technique cannotachieve.THREATS1) Expanding too fast and becoming too diversified within theindustry.2) staying on top of the industry and being able to compete withstart up firms and other businesses that could affect their revenueor gross profit margin.3) The established technique of mass manufacturing will not goaway and that they cannot interrelate with 3D printers.4) the technology does not improve and the cost of 3D printingmachine do not lower to a respectful price.
Cost of Merger Each company calculates its expenses in different terms. Apple’sexpenses are covered through net sales while 3D systems’ expensesare covered through their total revenue. In order to evaluate thepotential benefit of acquiring 3D Systems, Apple should eithercompare their results in terms of sales expenses or revenues.In terms of R&D, Apple spends 2% of its net sales revenues while 3DSystems spends 6.6% of their revenue so we can conclude that bothcompanies have a healthy attitude in terms of expenseexpenditure. Sales expenditures represent 34,1 % of 3Dsystems‘ revenues then wecan say that getting together with Apple would be a positive dealbecause it would lead to economies of scales thanks to the factthat Apple has already well-established selling platforms.
Strategy 3D systems is aiming at broadening their target audience by notonly reaching experts, but also individual users. According to Apple Press Info, Apple announced changes toincrease collaboration across hardware, software andservices, which supports us to think that this deal could be a goodone.
Terms of Process we would suggest that the printers produced would go under Apple’sbranding system when targeted to individual users. we would advise that the 3D Systems brand name remains whendealing with professionals. In order to retain 3D Systems’ actual customers, current printers shouldremain under the same design, however, Apple’s logo would beprinted on it. In terms of board of directors, 3D Systems, as of now, is authorized toissue 5 million shares of preferred stock and in addition to other rights, inorder to keep the board of directors interested in the acquisition andnot lose present stockholders, it is preferred to increase each sharevalue by 5%. Furthermore, 3D Systems directors will have seats in Apple’sboard of directors so that they can provide their input and be part ofthe decision process in terms of the company objective.
References 2013, June). Retrieved from Reuters:http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=AAPL.O Apple. (2013). Retrieved fromhttp://www.apple.com/pr/library/2012/10/29Apple-Announces-Changes-to-Increase-Collaboration-Across-Hardware-Software-Services.html Faulk, T. (2013, June 10). Retrieved from smartplanet:http://www.smartplanet.com/blog/bulletin/amazon-launches-3d-printer-section/21522 reportlinker. (2013). Retrieved fromhttp://www.reportlinker.com/ci02068/Printer-and-Copier.html Systems, 3. (n.d.). Retrieved fromhttp://www.3dsystems.com/company/investor/CorProf_13.pdf