engleski

JOINING OF ECONOMIC ENTITIES AS POSSIBILITY OF SURVIVAL ON MODERN MARKET

In today's global market a major challenge for every economic entity is to be competitive and achieve its objectives. The method of survival shows that those companies that have the lowest cost will survive and remain on the market. G. J. Stigler explained this technique on the market share of different sized companies in the steel industry in the United States. In his method he groups enterprises by size (small, medium and large). Historically, it is known that the economic entities were joining since Middle Ages. At that time, joint traders did not deal only with trade but also with transportation and monetary activity. Economic entities are still joining today, mostly in the form of cooperatives, clusters, cooperation, public private partnership, holding. Reason for that lies in the reduction of costs, risks and competition and the possibility of increasing the capacity of economic entities. Also it should be noted that there is a synergy effect when economic entities join. We are witnesses of many failed businesses, which did not respond to the economic crisis and the needs of the market. The aim of this paper is try to connect the technique of survival and joining of economic entities. Show how merger is one of the survive models that in conditions of economic crisis provides options to business entities. Only companies with the lowest cost and high-quality technology can survive and compete in today's market.

survival techniques, joining businesses, cooperatives, market share

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