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revision - Coggle Diagram

- - - - economies of scale, better deals because of increased order size, bulk-buying discounts etc.
      - increased revenue and market share; increased size of hr combined company increase market power and the ability to set higher prices.
      - sometimes it's impossible for a company to create the technology it needs to sustain its growth; it can be a lot simpler just to buy it
    - - all businesses have slightly different cultures, and they may not work well together.
      - possible communication issues; as the business gets bigger, or if there are now too many employees.
    - - why they merged
        
        so disey could use modern animation
        
        pixar to expand reach in the market
      - advantages of both companies
        
        lower cost of production
        
        better managment team
        
        increased market share
      - disadvantages for both companies
        
        share prices dropped by 1.2%
        
        disney having a restrictive culture may effect pixars creativity
        
        creative people from pixar may leave due to the change in creativity levels.
- - - - buying a competitor eliminates the threat of that competitor
      - good way to gain valuable assets
      - less expensive to buy than open a site, cheaper to re-brand.
      - gain economies of scale by bulk buying
      - increases the market share of the businesses and gives it synergy
    - - expensive and risky way to grow a business
      - may have additional legal costs.
      - the deal may need outside investment which may result in a loss of control for the owners.
      - lots of resources may be needed to rebrand he new sites, retrain the staff