apple’s acquisition of siri inc kds

7/30/2019 Apples Acquisition of Siri Inc kds

1/19

Apples Acquisition ofSiri Inc.

Done By:

Ankit.P.Bhandari

Manuraj KumarKumar Dipti Sarkar

Vatsal Pant

B.Ftech

6th semester

National institute of fashion technology, Bangalore

Submitted to: Mr. Joseph Regy


2/19

About the two companies. . .

Apple Inc is an American multinational corporation headquarteredin Cupertino, California.

Designs, develops, and sells consumer electronics, computer softwareand personal computers. Its best-known hardware products arethe Mac line of computers, the iPod music player, the iPhonesmartphone, 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 naturallanguage 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 anundisclosed sum.


3/19

Definition:

Acquisition refers to one company buying out another to combinethe bought entity within itself.

With acquisition, one firm takes over another and establishes itspower 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, thenthe process is labelled as acquisition


4/19

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


5/19

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


6/19

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


7/19

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.


8/19

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.


9/19

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.


10/19

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.


11/19

what are the sources of parenting advantage if any ?


12/19

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.


13/19

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 playmusic, 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 .


14/19

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.


15/19

If the acquisition is very new what would your focus

be on for the integration and why?


16/19

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 toavoid 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 confidentialinformation since the voice commands are sent to Apple for translationinto text.

Performance Siri works mostly in the cloud, so any latency or networkdisruption renders it useless.


17/19

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.


18/19

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.


19/19

apple’s acquisition of siri inc kds

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