The merger between two competing gas stations is an example of which business strategy?

The merger between two competing gas stations exemplifies a business strategy focused on consolidation and competitive advantage. By merging, the gas stations can pool their resources, streamline operations, and enhance their market position. This strategy often aims to reduce competition, achieve economies of scale, and increase operational efficiencies.

In this context, harvesting usually refers to maximizing the return on investment of a business by reducing expenditures rather than actively pursuing growth through mergers or acquisitions. Therefore, it does not capture the essence of a strategic merger, which is intended to strengthen market presence.

The correct classification of the merger is better aligned with strategies like acquisition and joint ventures, where entities come together for mutual benefit. However, in this specific case, a merger signifies a more fundamental consolidation of two companies into a single entity, marking a significant shift in their competitive landscape.