This discuss can be based on the list the savings that were generated in answering the previous question. The instructor can go down the list of synergies and examine whether each synergy would have occurred if: 1) Each company continued to operate independently, 2) The companies entered into an alliance, or 3) Could only be realized through a merger. In discussing the alliance possibility make sure to remind students that Compaq had initially wanted to start this relationship as an alliance and only move forward with the acquisition if the alliance proved to be successful.