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Improves economy of scale: Financial advantage, revival/dumping of sick units (2nd
opinion)
Economy of scope
Synergy
Market leadership
Financial bene"ts
Market access/entry
Diversify portfolio
Competition reduction/ bottlenecks – best practices of both
Forward integration and backward integration: vertical
Horizontal integration
Technology transfer
Time consuming
Lot of legal issues
Expensive (higher legal cost)
Dilution of ownership
Flawed intention
No guiding principles, No ground rules
No detailed investigation or fail to.
Poor stake holder outreach
Communication gap- lack of transparency between management & Workforce
Talent management problems
Clash of corporate culture, Resistant to change
Losing or gaining on other’s name
Strong unions
Political impediments
Conservative vs liberal attitude
Lower Costs
Higher Sales or Pro"ts
Lower Taxes
Debt Capacity
Use of idle cash
Oligopoly: Airlines industry
Duopoly: Pepsi & coke
Monopoly: Indian railways
Monopolistic: Supplier limited but more than oligopoly & n buyers, product
differentiation
Perfect competition: n buyers n suppliers
More problem in existence as no leadership in any category, no differentiation
Leadership in different tech, service delivery, cost minimization, integrated value chain,
supplier relationship (SRM), higher negotiation power with suppliers
Highly integrated online operations
Anso7 matrix:
Impacts Analysis:
Management
Competition
Employees
Public
Consumers
Shareholders
SWOT
Govt.
ERP: reduce duplicity of information
Customer base enhancing
Tweaking with portal
Quality measurement parameters of online services
V(AB) > V(A) + V(B)
•Pure conglomerate merger involves unrelated business activities that would not
qualify as either product-extension or market extension mergers
•Product conglomerate –extension mergers broaden the product lines of rms
•Individual entrepreneurship has responded to opportunities and, in turn created
further dynamism in industrial activities.
•Product line vs Leveraging marketing and managerial knowledge
•Value chain synergies
•Domestic competitive advantage
•Global sustained competitive advantage.
