Mergers - GCSE Business Definition

A Merger is a business growth strategy where two or more firms join together to form a single new organisation. This occurs to increase market share, achieve synergies, and gain competitive advantages. By merging, the firms can combine their resources, talents, and customer bases, reducing costs and increasing revenue. In GCSE Business, understanding mergers is important as they can significantly affect competition, employment, and consumer choice. Mergers can be horizontal (between competitors), vertical (between firms at different production stages), or conglomerate (between firms in unrelated industries).