In 2011, the Chief executive officer, and chairman of salesforce.com, Inc. (NYSE:CRM), Mark Benioff, delivered a speech at the San Francisco DreamForce conference. At the time, his business had an appeal to investors. But now the CEO is facing a situation where he is forced to reinvent the business in an effort to keep it in the competition.
A week ago, Bloomberg reported a number of companies that were potentially interested in buying out Salesforce. Perhaps the impressive appeal to these listed companies is because of how Benioff’s leadership has driven the company to its successes in the past.
On the top of the list of competing firms holding up most of the competition is blockbuster companies such as Microsoft, Oracle and SAP. Google and Amazon have also occupied a space on the list.
The idea is that the most successful of these firms are characterized by the fact that they have established elaborate platforms where other firms can run on. Imagine if Salesforce could make some of its cloud services available for sale at the very top. Some of the services that could help the company achieve this feat include marketing merchandises and customer service and management.
Unfortunately, the estimated amount for such an attractive deal tops up at about $60 billion depending on the kind of revenues experienced. This makes it highly unlikely for such an acquisition to take place. Sure the acquiring firm stands to benefit from massive revenues and reserves but the high price makes it too difficult for many firms to consider.
Benioff is proud of such a high regard for his position. At the same time, he is worried because of the new challenge that the company is now going through. So far, the company has performed exceptionally well. But the path ahead looks more daunting meaning it will take a lot of restructuring for the company to keep playing with the top dogs. Benioff will thus have to pull off a neat trick if any acquisition fails to catch on.
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