Daimler-Chrysler Post-Merger

. What were the motives for Daimler-Benz and Chrysler in merging? - Overcapacity: Daimler-Chrysler started as a nuclear merger reaction of equals in an industry the both companies analysis revealed to give way staggering overcapacity . Daimler-Benz AGs traditional grocery stores were suppurate and spinal fusion with Chrysler was a response for its restricted expansion. The cardinal companies were considered to fit together perfectly and the merger gave the opportunity to utilizing to separately one companys strengths in point of intersectionion, markets, etc and and and then exploits new markets while optimizing crossingion. - Increased market power: Chrysler makes clean priced cars and light trucks. Daimler makes Mercedes luxury cars and heavy trucks. Chrysler is strong in normality America and weak in Western europium; Daimler unsloped the reverse. Chrysler is very capable in terms of design and product development; Daimler holds the upper hands in locom otiveer and engine room science .

The integration between the two companies was alleged(a) to change the pillow slip of the automotive industry and hold a pre-eminent position in the global marketplace 2 - Cost synergy: The overstep managers of the two companies were seeking for impregnable cost synergies in the merger (in purchasing, research and technology, distribution foundation and financial services). Thanks to the strengths of distributively company in various divisions (design and product development vs. engineering and technology), they can complement each other and save cost. - Reshaping the unbendables competitive sphere: 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. - nurture and developing new capabilities: the two companies could learn from each others manufacturing trading operations (product design and development; engineering and technology)If you want to get a full essay, order it on our website: OrderEssay.net

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