Which of the following is an example of synergy in business?
A)Amazon's use of the Internet to sell books
B)Bank of America acquiring Countrywide Financial Corporation to reach a large pool of new customers
C)Blockbuster combining traditional video rental with online video rental
D)Walmart's order entry and inventory management system to coordinate with suppliers
E)Nike's use of technology to improve its product offerings

Question

Quizplus · Accepted Answer

Synergy refers to the combined and increased effectiveness of two or more entities working together. Bank of America acquiring Countrywide Financial Corporation is an example of synergy because it allowed Bank of America to tap into a new market of potential customers and expand its offerings, while Countrywide gained access to Bank of America's resources and customer base. This partnership allowed both companies to achieve more together than they could have on their own. The other options may be examples of innovation or using technology to improve business operations, but they do not necessarily demonstrate synergy between different entities.

Which of the Following Is an Example of Synergy in Business