This document analyzes the commercial synergy agreement between Zanzicar and Expedicar, a partnership that aims to increase market share and efficiency in the automotive sector. The agreement involves a vertical integration that allows for the internalization of intermediate costs and improved delivery services. The partnership has both positive and negative externalities, including benefits for consumers and producers, as well as potential job losses and business closures. The agreement is less regulated due to its non-competitive market characteristics and offers more flexibility compared to a complete merger.
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[...] In addition, this agreement will allow for the internalization of intermediate costs such as double margin to ensure a key-in-hand sale at a better price than competitors who do not have integrated solutions. 4. What is the type of cooperation chosen by Zanzicar and Expedicar? This is a partnership cooperation - as the companies are not competitors - which means that the two entities remain legally separate, in terms of organization and structure. This partnership has the advantage of not binding the companies forever and offers more flexibility to create new alliances. [...]
[...] On the other hand, Zanzicar, with its accessibility on the internet, aims at a larger market that could be exempt from geographical constraints thanks to the delivery service offered by Expedicar. In addition, Expedicar operates in a less competitive sector, as few companies offer its services. Thus, although in the same industry sector, the two companies are not horizontal competitors, but rather complementary in a vertical relationship. On what does the agreement between the two companies aim? As we mentioned earlier, Expedicar will deliver the cars sold by Zanzicar. [...]
[...] The interest in anticipating is crucial, especially for a company that produces traditional non-autonomous cars. Indeed, regulations could evolve if it turns out that autonomous cars are safer, and lead to a ban on non-autonomous cars. Even if the regulations are not as strict, the reduced cost of insurance (due to lower risk) initially, followed by the possibility of sharing or renting one's vehicle, would ultimately lead to a change in consumer attitudes. Therefore, automotive industry company strategies should include research and development in autonomous vehicles. [...]
[...] Why was this agreement not considered an anti-competitive practice? This agreement was not considered a horizontal agreement and therefore is less regulated. In fact, where a horizontal merger (partial or total) leads to a decrease in competition (price increase, quantity decrease) due to the reduction in the number of competitors, a vertical merger (partial or total) allows for improved efficiency by reducing intermediate margins and the costs of the economic chain." 6. How can cooperation relationships improve the functioning of markets? [...]
