Business Studies Unit 4: The motives for takeovers and mergers and how these link with corporate strategy

To gain market share - market penetration (ansoff matrix)

• Helps gain brand awareness/reputation
• Attract/ gian customers - acquire customers from the other business
• Economies of scale - purchasing, technical, financial, managerial

Eg. Morrisons takeover of Safeway was to gain market share.

To protect themselves from external circumstances

• Competition
• Recession

Spread the risk - market development (ansoff matrix)

Eg Walmart's takeover of Asda

To remove…