Tuesday, January 04, 2005

Consumers' rating of mergers

Another formal study has shown that mergers don't really mean better days ahead for customers. The study says that more than 50% of customers are dissatisfied with their service providers 2 years after a merger.

I can vouch for that - a few months into the AT&T Wireless and Cingular merger, my cellphone repeatedly switches between the 2 providers as they find ways to integrate their networks. But it gets worse - at times the cell enters into blind spots with no coverage - surely a result of the merger!

Companies still don't seem to do enough to think about and work on integration problems ahead of a merger. The synergies and cost savings that are talked about are not realized fully.

One of my early posts was on a frustrating experience at Fedex after its purchase of Kinko's. I am now prepared for worse!


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