Case study BMW and Rover Free Essay

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Case study BMW and Rover

1. What were the reasons for the BMW/Rover acquisition? The automotive industry in the early 1990's when the acquisition took place was influenced by a growing trend towards consolidation. A report published by the Economist Intelligence Unit concluded that by the year 2000, the car industry would be dominated by a group of only five global manufacturers. BMW was like Rover too small to survive on its own as a manufacturer. This situation forced the company to change their strategy towards extension. Having monitored Rover's development very well, the BMW management came to the conclusion that the two companies were a perfect fit in terms of possible synergies. The take-over of Rover meant a chance to achieve economies of scale along t

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