An Argument Against Setting up Market Show Through Takeovers and Mergers as the only method for Competition in a Loss-Making Sector to Survive
To what extent do you concur that the only path for opponents in a loss-making sector to survive is normally to build marketplace share through takeovers and mergers?
In a loss making industry businesses will see it very difficult to survive, particularly if there is a large amount of competition. Companies have to act quickly to be able to survive. This may be by takeovers/mergers or a technique of differentiation. Once two businesses have merged it enables them a lot of opportunities to develop their market talk about and permitting them to find it better to survive. On the other hand, as there are features of a merger additionally, there are various issues that could arise and ultimately not really affect their market talk about at all.
One reason I do not feel that that this may be the only method to survive is because of the potential issues that could arise as a result of merger/ take over; they need to think about a different approach of survival. If there are problems it could decrease the competitiveness because further costs could possibly be incurred and if these concerns are in the general public eye it will make a business less attractive to consumers. Therefore a business is not attractive to consumers it may bring about it finding it hard to survive as a result of loss of customers and for that reason market share won't be