A Decision Making Model with AHP for Choosing the Merging, Acquisition and Joint Venture Strategies in Auto Industry

Because of heavy competition between auto manufacturer and the threats of foreign companies, they try to reduce the internal competition and costs by cooperation and merge. Estimation about the auto market is affected by supply and demand. The demand depends on two factors: need for new cars and old cars exit. And the supply depends on production capacity and export. Key factors that affected on supply are income per capita and population age average. Auto market of Iran is closing to the equilibrium point and after it depends on GDP. In this paper find a solution for being successful and effective manager in survival in this industry, the concept of merge, strategic cooperation, buyout and acquisition is explained and with studying the complex market of auto in the world, we attention to their challenges for development and survival in Iran. Then with interview with experts and using multi criterion decision making method (AHP) we analyze the strategies of this industry. In this subject the advantages of merger such as cost reduction, accessing to knowledge, technology, suppliers, shared markets and financial resources in contrast of disadvantages such as import tariff and oil subsid and environmental standards are considered. The best strategy is cooperating with auto manufacturers.