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 industry the both companies analysis revealed to shit staggering overcapacity . Daimler-Benz AGs traditional grocery stores were grow and spinal fusion with Chrysler was a response for its restricted expansion. The primordial companies were considered to fit together perfectly and the merger gave the opportunity to utilizing to all(prenominal) one companys strengths in point of intersectionion, markets, etc and and hence exploits new markets while optimizing carrefourion. - Increased market power: Chrysler makes moderately priced cars and light trucks. Daimler makes Mercedes luxury cars and heavy trucks. Chrysler is strong in nitrogen America and weak in Western europium; Daimler vertical the reverse. Chrysler is very capable in terms of design and product development; Daimler holds the upper hands in loc omotiveer and engine room science .

The integration between the two companies was supposititious to change the pillow slip of the automotive industry and urinate 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 floor and financial services). Thanks to the strengths of each(prenominal) company in polar divisions (design and product development vs. engineering and technology), they can complement each other and save cost. - Reshaping the unbendables competitive chain: The integration between the two help ed Daimler-Benz reduce its dependence on Nor! th America market and expand to Western Europe as well as helped Chrysler approach to foreign markets. - learn 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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