Description

Shopify Acquisition of Deliverr Report

Contents

QUESTION 1: 3

1.0. External Issues Driving the Acquisition 3

1.1. Technological Innovations and Development 3

1.2. Online Shopping Competition 4

1.3. Demographic Trends 4

QUESTION 2: 5

2.0. Internal Benefits and Synergies for Both Companies 5

2.1. Inventory Control 5

2.2. Flexible, independent logistics services 6

2.3. Demand-driven inventory placement 6

2.4. Direct-To-Consumer Fulfillment Operations 7

QUESTION 3: 7

3.0. Managerial Challenges in Post-Acquisition Integration 7

3.1. Employee Engagement Challenges 7

3.2. Synergy Implementation Issues 8

3.4. Communication Challenges 8

QUESTION 4: 9

4. 0. Effects of the Acquisition on the Domestic Market of the Target Firm 9

4.1. Positive Effects 9

4.1.1. Increase in trading activities 9

4.1.2. Development of the e-commerce industry 9

4.1.3. Increased Competition 10

4.2. Negative effects 10

4.2.1. Market Reaction 10

4.2.2. Integration Risk 10

4.2.3. Higher Prices 11

QUESTION 5: 11

5. 0. Effects of the Digital Disruption that Contributed to the Acquisition 11

5.1. Potential same-day fulfillment 11

5.2. Seamless Inventory Distribution through Machine Learning 12

5.3. Free customizable packaging 12

5.4. Shopify Fulfillment Network cost 12

References 13

QUESTION 1:

1.0. External Issues Driving the Acquisition

The most important external factors influencing the Shopify acquisition of Deliverr Inc. are suggested in this report’s section based on multiple units of analysis (global, national, and industry) of external environmental factors.

1.1. Technological Innovations and Development

The strategic Shopify Acquisition of Deliverr was driven by several considerations, including political, economic, social, technological, environmental, and legal factors, according to the global unit of analysis. However, the most crucial factor that affected the company’s decision to acquire Deliverr Inc. was technological innovations and development. According to