Killer Acquisition

killer Acquisition
   this economic word means a company which has strong power (market power) in a certain market acquires another company coming in same market.

explanation of market power is below of these sentences.

   in an example, assumption that there is company A in food industry market and this company has strong market power in this market. then company C has a plan to come in this market with better quality and inexpensive price product. for company A, if company C came in the same market, the amount of our sales would be in danger. then, as a result, company A will acquire company C for maintaining or increasing power in a food industry market.
   typical example of killer acquisition is case of facebook. facebook acquired Whats app and instagram for keeping power in social media market. but as a conclusion, this acquisition was helpful for Whats app and instagram because they could improve sales a lot by using market share and power of Facebook.

market power
means that a company has strong influence in a market. for example, when a company change the price of a certain product in a market, the other companies have to change the price level as a company which has strong influence in a market. this means that this company has strong market power.
that is because if a company does not have strong market power and change the price level, the other company do not have to follow this price level changed by a company.
For instance, if company A which has strong market power changed the price level from 10 euro to 8 euro, the other companies have to change the price level at that level. if they do not do that, the amount of their sales would be dramatically decreased. but if they don't have strong market power in a market, the other companies do not have to change the price level because even if they do not change the price, their products would be bought by customers.