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Thursday 15 May 2014

Unit 3: Another merger in the news - Dixons & Carphone Warehouse

Click here for the latest on the merger between Dixons and Carphone Warehouse. Not only does it raise some excellent points on the advantages of merging, but take some time to read the analysis from Kamal Ahmed on the right hand side.

It highlights the previous issues that Carphone Warehouse had when it merged with the American company 'Best Buy'. (ie, 'they completely misunderstood the shopping habits of the British customer')

Possible questions:

Q) What type of merger is this? (4 Marks)

Q) Assess the advantages to the consumer & the producer of this merger. (12 Marks)

Q) What are the potential issues with a merger of this kind, in this market at this time? (12 Marks)

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