Expanding a business through skilful acquisition
A Rolls-Royce case study

Page 1: Introduction

The name ‘Rolls-Royce’ has always been associated with high quality products. Most people probably link the company with high quality aero-engines and motor cars. Rolls-Royce still makes aero-engines, but no longer manufactures cars. Instead, the company has transferred its core strengths and expertise into other markets in which it has the greatest competitive strengths. These are the...
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Page 2: Expanding through acquisition

The main way of achieving marine market expansion has been that of acquisition:taking over other leading players in the field in order to gain competitive advantage.A competitive strategy is one that enables an organisation to stay ahead of rivals. In the modern world, large organisations compete in global markets. To be successful they have to be the best at what they do and they need to be...
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Page 3: Identifying the new opportunity

Given the high levels of global competition in the modern world, a company like Rolls-Royce can survive and prosper only in those markets in which it is a dominant force. Opportunities for acquisition have been taken after careful evaluation. These opportunities have enabled the company to combine its own existing strengths with those of the excellent companies that it has acquired in order to...
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Page 4: The marine market

Rolls-Royce provides marine solutions for a wide range of customers. In particular, the company targets the high value niche markets of the industry. Examples of the products and systems provided for specialist vessels include: Cruise, ferry and merchant Cruise ships: engines, propellers, podded propulsors, thrusters, deck machinery, stabilisersFast passenger ferries: engines, propellers, podded...
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Page 5: Building a differential through green credentials

Today in advanced industrial societies, concern for the environment is at the forefront of manufacturers’ thinking. In order to gain competitive advantage, it is essential for manufacturers to produce products that meet rigorous environmental criteria. Rolls-Royce is very well placed to deliver solutions that meet modern day regulatory frameworks and which include clean solutions and fuel...
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Page 6: Conclusion

Rolls-Royce is convinced that the best way to be successful is to be a leading player (1 or 2) in the markets in which it operates. The company has a business with a proven marine pedigree that can trace its roots back to 1849. However, in the modern globally integrated highly competitive market place, it is essential to be the main force in marine solutions by: providing the widest range of...
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