Skip to main content

A master acquirer's many strategies

Italian billionaire Stefano Pessina has been working a broad strategy: Convinced that the drug-distribution business was destined to consolidate, Pessina keeps swallowing increasingly bigger companies. The result — at least one of the most recent — the merger of US-based Walgreens and Switzerland-based Alliance Boots into WBA. These two are significantly different companies, but here's Pessina's strategy for US retail: Infuse the Sephora-like stylishness of Boots into the efficiency and convenience of Walgreens stores.

Pessina is not done yet. He's eyeing CVS Health, but faces a giant challenge. While Walgreens pushes consumer products, CVS Health has positioned itself powerfully around health. Two opposing strategies! If Pessina can combine the two companies, it would be very interesting to see what his strategy would be.

Source: Fortune February 1, 2016

Comments

Popular posts from this blog

Explorer mentality Vs conqueror mentality

A fixation on competitors and on beating them is evidence of what Amazon's Jeff Bezos calls a conqueror mentality. In contrast, people waking up in the morning thinking how to innovate for the customer -- and having intense fun innovating -- is evidence of an explorer mentality.

The explorer mentality resulted in Amazon allowing negative reviews of its products. Reacting to this, a book publisher objected, saying "You make money when you sell things." But Bezos thought, "We don't make money when we sell things; we make money when we help customers make purchase decisions." So explorer mentality also demands a willingness to be misunderstood for long periods of time.

During his 16 years as CEO, Bezos' Amazon has delivered shareholder returns of 12,266% (industry-adjusted), and the company's value has grown by $111 billion. More in HBR Jan-Feb 2013.

M&A perspective: IT staffing Vs IT consulting

This report is a simple analysis by HT Capital -- a boutique investment banking firm in New York. It basically makes the point that being a staffing company (Vs consulting company) does not provide adequate returns to most investors, especially from an M&A perspective.

Peter Rozsa, co-author of the report, is a Senior Managing Director at HT Capital. He was also my "classmate" at a Columbia Business School executive education program. I have Peter's permission to make the report available here.

Click to download PDF report.

Leading Change Vs. "Leading" Status Quo

Change and Status quo can be as far apart from each other as a butterfly is from a caterpillar ...

Or ... as an Amazon.com is from a K-Mart ... Or ... as a BMW is from a Hyundai ... Or ... as laying a runway is from paving a cow path ... Or ... as a solution is from a product ... Or ... as experience is from service ... Or ... as customer success is from customer satisfaction ... Or ... as a distinct brand-you is from a me-too employee ...

Change can be triggered by innovation. Change can happen in corporate culture. And so on. There is a leader "behind" every Change. If you consider the corporate world, people like Lou Gerstner, Michael Dell, and Jack Welch may come to mind. Actually, there are scores of other lesser-known and unknown leaders that make change happen in their organizations.

Here's my question: What are some differences between those who lead change and those who "lead" the Status quo? Oh yes, we know about the staggering percentage of Change i…