Aladdin Knowledge Systems.
Date Submitted: 09/29/2001 01:50:58
1)<Tab/>Why did Aladdin buy FAST? Was it a good move?
Because Aladdin needed to consolidate its market position in the software security business. The acquisition of FAST was intended to help achieve this goal. Almost 95% of Aladdin's revenues were from sales of software security products, however, sales growth in this area was slowing. So acquiring FAST was a good move. The company expanded its market share, selling to different clients.
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it may not sustain the clients and the business. Aladdin should not phase out HARDLOCK. Aladdin is more profitable keeping the HARDLOCK, because it has a high value product. Aladdin has to analyze the geographical areas where both products has equivalent market share and in the beginning has to keep these products. In case of the countries where one specific product has low market share, it should be considered the option of cancel the distribution.
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