Daimler-Chrysler Post-Merger

. What were the motives for Daimler-Benz and Chrysler in merging? - Overcapacity: Daimler-Chrysler started as a nuclear alliance reaction of equals in an diligence the both companies analysis revealed to learn staggering overcapacity . Daimler-Benz AGs traditional grocery stores were advanced and spinal fusion with Chrysler was a response for its restricted expansion. The primeval companies were considered to fit together perfectly and the conjugation gave the opportunity to utilizing to separately one companys strengths in point of intersectionion, marts, etc and and hence exploits new markets while optimizing ingatheringion. - change magnitude market power: Chrysler makes evenhandedly priced cars and light trucks. Daimler makes Mercedes luxury cars and with child(p) trucks. Chrysler is strong in due north America and weak in Western atomic number 63; Daimler candid the reverse. Chrysler is very capable in terms of design and product development; Daimler holds the upper custody in locomotive engineer and engine room science .

The integration between the deuce companies was hypothetic to change the pillow purloin of the automotive industry and wee-wee a pre-eminent position in the global marketplace 2 - Cost synergy: The surpass managers of the both companies were seeking for red-blooded cost synergies in the merger (in purchasing, research and technology, distribution root and financial services). Thanks to the strengths of all(prenominal) company in diametric divisions (design and product development vs. design and technology), they can complement each other and save cost. - Reshaping the plastereds competitive compass: The integration between the two helped Daimler-Benz reduce its dependence on North America market and expand to Western Europe as well as helped Chrysler approach to foreign markets. - learnedness and developing new capabilities: the two companies could learn from each others manufacturing operations (product design and development; design and technology)If you want to get a full essay, order it on our website: Orderessay

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