Buying tech to capture new markets is very effective. The debate surrounding buying tech is a very interesting one. You can argue on one hand that it is very easy and cheap to do so. However, competitors no longer sell it to you or if a company has a lot of money they don’t need to sell. On the other hand, it is almost impossible to break into an existing market just like the way the world is.
Lessons learned in this episode where I was buying tech:
1. Buying tech is one of the easiest ways to win the game
By buying tech you almost end up being on the same level as your competitors other than the branding aspect.
2. Always sell your semi-products or even raw materials while you are planning
It really helps if you have a raw material or semi-product (eg. paper, linen etc.) to sell while you are planning or waiting to start using them. Not only are you covering your costs for that firm, but you are also training your employees thus making better products when you start using them. Take my leather farm, I was not using it for long but by then the quality had gone up.
3. R&D as you plan
The only bet you have to catch up on tech is to do 5-year research and hope you catch up or get close to catching up. Sometimes you may not be able to buy the tech and this is the best way to catch up and become competitive.
What do you think? Leave a comment below.