Is merger a successful way to enhance the competitive advantage of organizations?
OUTLINE Building a competitive advantage (CA) means to take offensive or defensive actions toward a sustainable market position that successfully managed competitive forces while generating superior performance and returns. There are two basic types of competitive advantage – cost leadership and differentiation. The third element of this strategy is focus as cost focus or differentiation focus (1998). From a long-term strategy conception, competitive advantage would be achieved through merger and acquisitions (M&A). M&A refers to the process of combining two or more companies while retaining a shared interest. For the purpose of this research, we will use the framework of merger alone. Mergers are distinct to acquisition or takeover in terms of management, levels of authority, stocks and financing. As a perceived value-added component, merger impacts shareholder values in every transaction undertaken. The competitive advantage achieved through mergers considers understanding of univers
