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Risks
1. Overpaying for Acquisitions: The most obvious risk of this strategy is acquiring companies at inflated prices. If Bridgestone pays too much, it could diminish returns over time.
2. Difficulties Integrating: It can be difficult to assimilate managers, employees, and customers when merging companies. If not done properly, it may cause a disruption of operations, customer service, and market share.
3. Technology Overload: If Bridgestone acquires companies that use different technology platforms, it could become difficult and costly to integrate the technologies into a cohesive platform.
4. Culture Clashes: Bridgestone will need to be mindful of any culture clashes that could arise when integrating a company into its own corporate culture. Without proper management of this, it could lead to costly missed opportunities.
5. Regulatory Issues: The company may face legal or regulatory issues if it acquires another company that is in a different part of the world or in a different industry. Bridgestone would have to be aware of the applicable regulations in each jurisdiction and ensure that it is compliant.