Hi, I need help with essay on Mergers& Acquisitions. Paper must be at least 1000 words. Please, no plagiarized work!
The US airline industry had previously been dominated by nine companies that created a stiff competition in the market. However, the move to merge the American airlines and the US airways has altered the situation. The main reason that led to the merger is the desire both companies to gain competitive advantage over their competitors (Thomas, 2013). The size of a company determines their convincing power. Large companies have a likelihood of attracting customers and shareholders, and hence the company will be more competitive. The two companies also came together in order to heighten their sales. With the many numbers of competitors, the companies hoped that coming together would increase their sales. The two companies intended to expand rapidly since more resources, and labor had been brought together (Daily Mail Reporter, 2013). The merger of the two airlines&nbsp.will ensure that the company will control approximately 20% of the market share since 80% of the market share is controlled by the four large airlines (Reed, 2014).