BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sony buys out Ericsson for 875 million Euro
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Phone Verizon buys internet AOL
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Marriot buys Stanwood hotel to extend its scale
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Microsoft buys Nokia’s phone business in a 7.2 billion dollars
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Detailed explanation-1: -A car manufacturer that purchases a tire company is a vertical merger, which could reduce the cost of tires for the automaker. The merger could also expand its business by allowing the manufacturer to supply tires to competing automakers–thus boosting revenue.
Detailed explanation-2: -Vertical merger Example: Merger between Zee Entertainment Enterprises Limited Ltd. (ZEEL), a broadcaster, and Dish TV India Limited, a distribution platform operator is an example of vertical merger as both the entities are at different stages of the production/supply chain.
Detailed explanation-3: -Horizontal merger: When companies that sell similar products merge together. Vertical merger: Occurs between companies at different stages in the production process (between companies where one buys or sells something from or to the company).
Detailed explanation-4: -Integration of Facebook, Whatsapp, Instagram & Messenger This is one of the best examples of horizontal mergers of present times. All of these were independent social media platforms started by different companies and one after another, over the years, these were integrated into one big social media company.