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Why are there an increasing number of mergers with companies in different industries?

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Phillip Holland eNotes educator | Certified Educator

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Companies merge in order to take advantage of each other's strengths. Companies may merge in order to increase product offerings for their consumers. Grocery store chains may merge with pharmacies in order to expand their own in-store pharmacy offerings. Grocery stores also merge with delivery services in order to provide customers more options for shopping online in order to compete with larger online companies such as Amazon.

Companies also merge in order to streamline their business. Amazon now makes more money from its computing services than it does from sales. Banks are closely tied with insurance companies since both businesses appeal to the same demographic who are concerned with money management. Many companies are looking into buying their own trucking services in order to save money by not having to go to outside vendors to move their product.

Companies also merge in order to gain larger market shares. News media outlets often buy smaller news providers in order to maximize...

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