Question

Give so examples of merging companies in different industries.

Answer 1

Among all types of mergers, the different industry merger is the most challenging task as it makes closer two companies of a different business domain. This is called the conglomerate merger where two different business comes together to challenge the market in the different area. Sometimes the conglomerate business becomes most challenging task to survive in the market as the company work culture is totally different for both the merging units. For example, when a shoe manufacturer merges its business or acquires a soft drink making business it is difficult to look after both the different market as the strategy and the segmentation of market is totally different for both of them.

An example of the conglomerate merger is TATA group buying stakes and making a new airline named as Vistara airlines. The TATA group in India makes steel and motors and other FMCG goods but it invested in Airline industry through the name of TATA SIA airlines and merged in VISTARA to start a new business domain in 2015. Another example is Procter and Gamble merging with Gillette in 2005. P&G is an FMCG manufacturing company and Gillette only focuses on making shaving tools and accessories. Conglomerate or different industry merger is a challenging task and companies do their experiment in a different field of business when they are stable in their own field. A famous example is Walt Disney group merging with American broadcasting corporation in 1996. Now Disney-ABC is looking after all television broadcasting of the Disney group programs.