Which merger strategy is most difficult to maintain?

Expert Solution

Hi

Mergers happen when two companies agree to go forward as a single new company.Mergers basically help companies to expand their business.

So now about the strategies, most common types of mergers are Horizontal merger, Verical merger, market extension merger and Conglomeration.

In my opinon, i would say Horizontal merger is the most difficult to maintain for a long period of time.In horizontal mergers, companies who are in same market and offer same products merges and form a new company.This leads to employees of two different organizations come under one roof to work together but it gets difficult to integrate the culture, employee behavior of two different organization.Another problem with this strategy is that it leads to lack of product diversification which is a very risky proposition because then one single product can affect the profitablity of the entire company. Apart from this, merger in the same industry can help new entrants of the market to grow which will lead to decrease in market share of the company.

jeff jeffy answered 2 years ago

How difficult is it to develop and maintain healthcare databases?

We live on a planet with finite resources which makes continued economic growth difficult to maintain....

We live on a planet with finite resources which makes continued economic growth difficult to maintain. If we are seeing economic growth rates flatten out, please explain how invention might be impacted by a slow growth /no growth economy. iv. What can we do about this problem? Be specific. 1. Discuss invention as a process and compare that to invention as a result. Give 2 examples of each, and discuss how each might be affected by a slow growth /...

Please answer and give an example if appropriate. How difficult is it for merger and acquisition...

Please answer and give an example if appropriate. How difficult is it for merger and acquisition strategies to create value and which firms benefit the most from M & A activity?

which of the obstructions to professionalism will be most difficult for you to overcome. Explain why.

Which of the following is most likely a strategy for self-improvement?

Which of the following is most likely a strategy for self-improvement?comparing your performance to otherssetting specific goals for yourselffocusing on your obstaclesclarifying your mistakesdemanding help from others

which steps of the 5 stages of strategy making, strategy executing process is most Important and...

which steps of the 5 stages of strategy making, strategy executing process is most Important and why

Why is it so difficult to maintain compliance with privacy and security regulations in healthcare?

Which of the five conflict styles is most difficult for you to implement? How does this...

Which of the five conflict styles is most difficult for you to implement? How does this style make you feel about yourself? (Some describe conflict as; a war, a mess, a trial, gamesmanship)

Which of the 4 provider gaps do you believe is the most difficult to address?

Which of the following generic strategies is the most difficult to implement and why? Cite concrete...

Which of the following generic strategies is the most difficult to implement and why? Cite concrete examples. Overall low-cost provider strategy; broad differentiation strategy; focused low-cost strategy; focused differentiation strategy; best-cost provider strategy

Question