synergy

noun syn·er·gy \ ˈsi-nər-jē \

|Updated on: 10 Jun 2018

Definition of synergy

plural synergies

1 : synergism; broadly : combined action or operation

2 : a mutually advantageous conjunction or compatibility of distinct business participants or elements (such as resources or efforts)

See synergy defined for English-language learners

Examples of synergy in a Sentence

A synergy has developed among the different groups working on this project.
two companies that have found synergy

Recent Examples of synergy from the Web

By the end of the week, all three shows were the talk of the town, greatly thanks to the synergies between locations and collections.

— steff yotka, Vogue, "What’s Up Down Under? A Report From Fashion Week in Sydney," 24 May 2018
Batum and center Cody Zeller, who moved to the second unit when Howard arrived, had exceptional synergy in Batum’s first two seasons in Charlotte.

— rick bonnell, charlotteobserver, "Hornets' highest-paid players rarely clicked on court. Can they fix this problem? | Charlotte Observer," 11 Apr. 2018
Jamie Foxx and Katie Holmes belong to a small subset of celebrity couples who choose not to capitalize on the brand synergy possibilities of their union, making their relationships the stuff of gossip legend.

— reyhan harmanci, The Cut, "I Think About This a Lot: This Grainy Photo of Katie Holmes and Jamie Foxx," 19 Mar. 2018
For a twist of synergy, the grocer in question: Shaw’s Supermarkets.

— jr radcliffe, Milwaukee Journal Sentinel, "Where did Travis Shaw's ‘Mayor of Ding Dong City’ nickname come from, anyway?," 24 May 2018
Extolling the importance of synergy between the front office and coaching staff, Gores proudly introduced Stan Van Gundy as team president and head coach in May 2014.

— vince ellis, Detroit Free Press, "Detroit Pistons president search: Michael Curry lauds Ed Stefanski," 20 May 2018
That synergy was never replicated this season with Howard.

— rick bonnell, charlotteobserver, "Hornets' highest-paid players rarely clicked on court. Can they fix this problem? | Charlotte Observer," 11 Apr. 2018
The Fort will also, in a bit of brand synergy that almost no one could have seen coming, feature the new book FADER FORT: Setting The Stage.

— dan rys, Billboard, "SXSW 2018: Fader Fort Reveals New Location, Initial Lineup of SOB X RBE, Soccer Mommy, More," 6 Mar. 2018
There is a synergy to the superstardom that is brewing, aided by the technological interconnectivity that has exploded since a trophy last came to town.

— david murphy, Philly.com, "Look out, world: a golden age of Philadelphia sports is about to arrive | David Murphy," 2 Feb. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'synergy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Did You Know?

An old saying, "The whole is greater than the sum of its parts", expresses the basic meaning of synergy. The word is sometimes used in a purely physical sense, especially when talking about drugs; sometimes a "cocktail" of drugs may be more effective than the sum of the effectiveness of each of the separate drugs. But the word is best known in the world of business. The notion that, when the right two companies merge, they'll produce a profitable synergy seemed exciting in the 1990s, when synergy became a trendy buzzword (even though it's actually been around since the 17th century). The idea of synergy was one factor in what became a "merger mania;" unfortunately, business synergy often turned out to be harder to achieve than to imagine.

Origin and Etymology of synergy

New Latin synergia, from Greek synergos working together

NEW! Time Traveler

First Known Use: 1632

in the meaning defined at sense 1

See Words from the same year

Other Biology Terms

autochthonous, fecund, homunculus, phylogeny, substrate

Financial Definition of SYNERGY

synergy

noun

What It Is

Synergy is the benefit that results when two or more agents work together to achieve something either one couldn't have achieved on its own. It's the concept of the whole being greater than the sum of its parts.

How It Works

Synergy is often one of the goals of a merger or acquisition. The two firms combined may be able to achieve higher profitability than either firm could achieve on its own. Synergy can be reflected in increased revenues and/or lower expenses.

For example, a company may acquire a similar firm, allowing it to expand its product offering and, as a result, increase its sales and revenues. This could not have been accomplished had the two firms remained independant.

In management, synergies may be created between management teams, resulting in increased capacity and workflow that was not possible when the teams were working independently.

As for costs, synergies allow for the creation of economies of scale. For example, a merger can reduce multiple levels of management and duplication and spread fixed cost technologies over larger operations.

Why It Matters

Synergies may be elusive, but they are one of the most important objectives in business. To acquire synergy will result in more efficiency, more efficacy and higher profitability.

Source: Investing Answers