Digital Ltd. and Analog Communications provide Cable T.V network in Delhi and Punjab respectively. After sometime the market was slowly taken-over by big cable companies. Both Digital Ltd. and Analog communications understood the competition and decided to come together so as to increase their markets share. This strategy helped them in cost saving through economies of scale as they could cover more areas now. It led to the overall growth of both the companies. Identify the enterprise growth strategy adopted by the two.

Market Extension Horizontal merger Vertical merger Product extension

Market Extension

A market extension merger takes place between two companies that deal in the same products but in separate markets. The main purpose of the market extension merger is to make sure that the merging companies can get access to a bigger market and that ensures a bigger client base.