Recent decades have been characterized by diversification and conglomerate mergers. These began in the United States in the 60s and 70s and then became important in Germany, particularly in the late 80s and early 90s.1 Most firms today are active in several markets and face global competitors who are also active in several markets. Multimarket activity allows synergies to be exploited but it may also lead to diseconomies of scope. The existence of multimarket competitors allows firms to direct their strategies towards these competitors and carry out multimarket strategies.
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- Deutscher Universitätsverlag
- Chapter 1
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