‘Kapoor Merrytime Ltd.’ is a renowned name in naturally flavoured ice-creams made from fresh fruits and edible vegetables. The company has its…

‘Kapoor Merrytime Ltd.’ is a renowned name in naturally flavoured ice-creams made from fresh fruits and edible vegetables. The company has its presence in Maharashtra and Goa. Its ice-creams sell under the brand name ‘Satvika’. The company has a strong foothold in Maharashtra but is struggling for success in the Goa market. The reason is the presence of a successful local brand by ‘Pastle Ice-creams Ltd.’ in the market. ‘Pastle Ice-creams Ltd.’ is selling natural ice-creams with locally preferred flavours.

‘Kapoor Merrytime Ltd.’ tried to negotiate its way but because of the goodwill of ‘Pastle Ice-creams Ltd.’, it could not succeed in its efforts. Frustrated, ‘Kapoor Merrytime Ltd.’ started buying the shares of ‘Pastle Ice-creams Ltd.’ to gain control over the management of ‘Pastle Ice-creams Ltd.’

Identify and explain the type of business combination adopted by ‘Kapoor Merrytime Ltd.’ as its growth strategy in the Goa market.

Explain any two advantages which ‘Kapoor Merrytime Ltd.’ would have by adopting its designed strategy.