Mergers

The merger of Techno Fit and Let’s Konnect was due to the rising competition with Arihant Tech. The market was slowly captured by Arihant Tech, due to its policy of providing free service in the first 6 months. Both Techno Fit and Let’s Konnect couldn't stand the price war between the companies in the telecom sector and decided to come together so as to increase their market share. This strategy helped them in cost saving through economies of scale as they could cover more areas now. It led to the overall growth of both companies.

Identify and explain the growth strategy adopted above by the telecom operators, Techno Fit and Let’s Konnect.

 ABC Company, manufacturing shoes, has taken over XYZ Company which also manufactures shoes at a small scale. What do you think will be the reason for this kind of takeover?

In the year 2012, the social media application “Chowpal” acquired “Socialite” at a purchase value of $1 billion. Both the entities operated in the social media industry and offered similar products as part of their photo-sharing services. However, Chowpal intended to further bolster its market position in the social media space, and the acquisition of Socialite exactly fitted in its scheme of plan. The merger eventually helped Chowpal in increasing its market share, eliminating competition, and gaining access to a wider audience. Identify the type of merger:

Name the two forms that merger can take place.

It takes place between two companies that deal in the same products but in separate markets.

 Explain in detail the types of mergers.

 It takes place between two business organisations that deal in products that are related to each other and operate in the same market.

 A merger occurring between companies in the same industry.