Forms of company integration
Posted: Thu Jan 30, 2025 7:19 am
Of course, it is not customary to say about a new product that it was produced by "the integration of Google and Ford". In fact, integration can take various forms, based on the goals and direction of joint work, the degree of coordination. Let's consider these forms:
Strategic Alliance
In this case, two or more companies agree to carry out joint activities for a certain period of time. By forming alliances, mutual benefits are derived from the transfer of resources, technology and experience.
In 2021, Google and Ford partnered to equip Ford vehicles with Google's Android-based system, giving Google continued large orders and Ford a full-fledged digital product.
In a strategic alliance, companies never merge or absorb each other.
Consortium
It is a temporary combination of malta email list companies to meet financial needs, usually for the purpose of investing in a large-scale project.
Consortium
Source: shutterstock.com
The most common are banking consortiums, such as the British holding company NatWest Group, whose members include the Royal and National Banks of Scotland. It was formed in 1969 during a period of economic instability and currently unites seven subsidiaries from several countries.
Cartel
Organizations that are part of a cartel seek to monopolize the market while remaining independent entities. By creating cartels, firms conduct coordinated activities in certain areas.
Among the legally operating international cartels, OPEC stands out. It includes oil-exporting countries that enter into public agreements to control oil prices.
Individual countries may oppose the creation of cartels or, on the contrary, stimulate it. In Russia, the FAS supervises cartels and applies penalties to violators.
Syndicate
The purpose of this association of companies is to reduce competition between its members or to create favorable trading conditions. When joining a syndicate, a company ceases to be an independent market entity, but continues to produce its own products.
As with cartels, a number of countries have restrictions on this form of integration.
Strategic Alliance
In this case, two or more companies agree to carry out joint activities for a certain period of time. By forming alliances, mutual benefits are derived from the transfer of resources, technology and experience.
In 2021, Google and Ford partnered to equip Ford vehicles with Google's Android-based system, giving Google continued large orders and Ford a full-fledged digital product.
In a strategic alliance, companies never merge or absorb each other.
Consortium
It is a temporary combination of malta email list companies to meet financial needs, usually for the purpose of investing in a large-scale project.
Consortium
Source: shutterstock.com
The most common are banking consortiums, such as the British holding company NatWest Group, whose members include the Royal and National Banks of Scotland. It was formed in 1969 during a period of economic instability and currently unites seven subsidiaries from several countries.
Cartel
Organizations that are part of a cartel seek to monopolize the market while remaining independent entities. By creating cartels, firms conduct coordinated activities in certain areas.
Among the legally operating international cartels, OPEC stands out. It includes oil-exporting countries that enter into public agreements to control oil prices.
Individual countries may oppose the creation of cartels or, on the contrary, stimulate it. In Russia, the FAS supervises cartels and applies penalties to violators.
Syndicate
The purpose of this association of companies is to reduce competition between its members or to create favorable trading conditions. When joining a syndicate, a company ceases to be an independent market entity, but continues to produce its own products.
As with cartels, a number of countries have restrictions on this form of integration.