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Firm Within Merge Case Study

By:   •  July 5, 2012  •  Essay  •  378 Words (2 Pages)  •  1,212 Views

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As in the case, insurance firms within the same country merge in response to the liberalization of insurance across European for those point: firms merger in the same country which can use each of the resource to better doing business in other country or domestic country. Also merger can help economic efficiency. Firms within the same country will increase competition and lower price, customer would have more choice. European insurance industry indicate that a move toward greater regional economic integration can potentially deliver important benefits to consumers an present firms with new challenges.

First of all, different firm within merge which can better allocate their resource and share information. Moreover, firms would have different market share in different insurance market, one might doing personal insurance very well, one might doing health insurance very good, one might doing so well in France, one might doing so well in German. So they are not only keeping the market share, but also develop another business. After firms within merge, they can protect themselves in the industry and also will do better in the foreign market.

Secondly, firms within merge will help economic efficiency and firms can focus advantageous resources to increase competitive strengths. Therefore, the firms will have competitive advantage to inter other insurance market and have more resource to put in R&D, advertising. Then develop

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