Distribution networks. A business can use the scale of its distribution
network to increase sales of its existing products and services or to reduce the
cost of a new-product launch. For Gillette, the principal motive for its $7
billion acquisition of battery maker Duracell in late 1996 was synergy in
distribution. The distribution network that gets Gillettes razor blades into
supermarkets and convenience stores Ð the same outlets where batteries are
sold Ð was second to none. So big was this opportunity that investors added
$4.1 billion to the companies combined capitalization in the two days
following the announcement of the deal