Abstract
In the 1990s, competition in the car business industry increased dramatically. Companies tried to merge or acquire their competitors in order to remain competitive and strong enough not to be absorbed by other companies. This process is still prevalent today, and takes place in most of the businesses. Globalization has become the new framework of the business realm. Chrysler and Daimler-Benz have always been well aware of these issues. Their merger resulted in the formation of the world's third biggest car manufacturer. This report will analyze Daimler-Benz and Chrysler's objectives in the merger after a study of the changing strategic and competitive environment of the industry in the 1990s.
