Synergy effects

Synergy means working together. Synergy effects are composite effects, ie the total effects of various measures are greater than the sum of their individual effects. Synergy effects can result from the interaction of people, products and companies. Examples are:

Sales association (joint sale of complementary products)

Procurement association (joint purchasing of products or production factors)

Service network (collaboration between back office and field service as well as customer service)

Produktionsverbund (Strategic alliance)

Group of companies (joint venture)

Sales network (shared use of sales networks)

Werbeverbund (Gemeinschafts-, Sammelund Association advertising)

It is often assumed by management that the bundling of resources and skills can lead to a significant reduction in costs and / or an increase in sales. However, synergy effects may not materialize if the chances of synergy potentials are overestimated and the risks and barriers are underestimated. The development of synergy potential requires the following activities from management:

Determine desired synergy effects

Identifying and evaluating synergy potential

Assessing the synergy barriers and risks

Conception and evaluation of measures to realize the composite effects

Implementation and enforcement of suitable measures to exploit the synergy potential

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