Question

Synergy can be an important competitive advantage. Why can it also be a ‘mirage’? Give an example of 1 brand that achieved synergy, and an example of 1 competing brand that attempted, but failed to achieve, synergy.

Short Essay format

Answer 1

Synergy is simply mean that working together.. In the utterly competitive business environment two or more companies came together to form synergy where there combined value and performance will be greater than sum of separate individual entity. It's is basically used to the concept of Mergers and Acquisitions..

But sometimes the Synergy is failed to achieved it's sole purpose due to different governmental policies and organizatioal failures. Then it's act like an 'Mirage' and can't achieve productivity..

Examples- The Successful Example of a Brand that achieve Synergy is Tata motors. It's acquired the Brand Jaguar from Ford in 2008 in the process of achieving synergy and the deal paid off brilliantly..

Whereas an Unsuccessful Example is HeroHonda.. In 2010 the two companies Hero Moto cop and Honda Motors dissolved their Joint venture and thus they tried to achieve synergy but failed in the process to do so..

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