Synergy Definition

In business, synergy is the creation of a whole that is greater than the simple sum of its parts. Synergy occurs when two or more companies join together to create a new company or when two or more people with complementary skills work together to achieve common goals.

In its simplest form, synergy occurs when two companies combine their resources to create a new product or service that neither could have created on their own. For example, when two companies with complementary products decide to merge or form a partnership, they can offer customers a complete solution that neither company could have offered on its own.

Synergy can also occur when two people with complementary skills work together. For example, when a salesperson and a marketing expert team up, they can create a powerful sales and marketing force. Similarly, when a financial analyst and an accountant team up, they can provide insights into both the financial and operational aspects of a business.

Ultimately, synergy occurs when two or more elements come together to create something that is greater than the sum of its parts. When it happens in business, it can lead to increased profits, market share, and competitive advantage.