Mergers and acquisitions can impact industry structure and competitiveness from "summary" of Competitive Strategy by Michael E. Porter
Mergers and acquisitions have a profound effect on the structure and competitiveness of industries. When two companies come together through a merger or acquisition, they often combine resources, capabilities, and market share, which can result in a significant shift in the competitive dynamics of the industry. One of the most immediate impacts of mergers and acquisitions is on industry structure. By consolidating market share, companies can increase their bargaining power with suppliers and customers, leading to a more concentrated industry with fewer players. This increased concentration can make it more difficult for new entrants to break into the market, as the larger, more established players have a stronger foothold. Moreover,...
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