Strategic Management

strategic management2006 1 .IntroductionThe maturity on communications , air and net technologies has created a new-fashioned way of seeing flows of study via many personas of media . While in 1980s the common instruction media was only television and radio , in 1990s good deal starts witnessing the use of a personal computer , which connected to the lucre , as media to browse information that is scattered in weakened and large computers all over the world . In 2000s , the make love get intense as television tush alike perform as media to browse information in the net in addition to its main function to display picture and soundThe convergence of the technologies has driven media companies to integrate the functional eudaemonias of separate electronic appliances into a single gadget or to merge diametric companies into a single entity through a merger and encyclopaedism (M AConcerning the attractive potential of becoming a powerful alliance , this exhibits the rationale of merger in the midst of America Online (AOL ) and period Warner that happened few years ago . Each company represents different type media AOL was a well-known provider of online media while Time Warner was a traditional business that involves value chains and supply chains2 . nuclear fusion reaction Analysis2 .1 Reasons of Merger between AOL and Time WarnerAccording to the Securities Data Company , the buck value of U .S (M A in 1996 recorded a 27 percent increase to US 658 .8 billion from US 518 billion in 1995 . Basically , any merger aims at expanding an organization s presence and becoming a multinational attempt .

The merger also opens new opportunities for the combined company to veer be of product development , to cut distribution costs or to strengthen companies presence in specific marketVadim Kotelnikov (2006 ) in Mergers Acquisitions says there are four reasons why corporations make acquisitions as followsTo acquire complementary products , in to broaden the lineTo acquire new markets or distribution channelsTo acquire additional mass , and benefit from economies of scaleTo acquire technology , to complement or replace the currently used one Concerning the merger between AOL and Time Warner , the documentary of the merger is to perform a `synergy in appendage , which is advantageous for many reasons . Basically , a synergy between two separate entities could exist when the combined company can take benefits of separately opportunity not available to each unit on its own . For instances , the merger between AOL and Time Warner has provided the ability for the new company to perform cross-promotional marketing and wad advertising buys in which Time Warner s services , such as CNN .com can be advertised heavily on AOL s internet serviceIn addition , the merger between AOL and Time Warner is also considered as a strategic move to bring the company into a new formation that challenges the news industry . In my depression , the merger is inline with the objectives of mergers as usualThe merger between AOL and Time Warner could be considered as vertical merger since it is the combination...If you want to get a full essay, order it on our website: Orderessay

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