Problem
The mobile industry is becoming more and more competitive. Shareholders of both XYZ microchips and Huawei phones feel that the only way to gain market power is to enter a merger/acquisition with one another to be able to compete against the global giant - Apple. This is because faster phones will allow the company to gain market share.
From your interpretation of the above information, critically analyze the following:
1. Which form should the company choose (merger or acquisition) and why?
2. Is this a related or unrelated merger and why?
3. Is this a horizontal or vertical merger and why?