synergy

noun

syn·er·gy | \ ˈsi-nər-jē

plural synergies

Definition of synergy

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)

Did You Know? Example Sentences Learn More about synergy

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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.

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 on the Web

For Mahary, the synergy between the brand and Project Tsehigh was there from the start. — Janelle Okwodu, Vogue, "How One Model Is Using Fashion’s Sneaker Obsession to Increase Electricity Access in East Africa," 19 Oct. 2018 And then finally, there’s a tremendous synergy between the two. — Eric Johnson, Recode, "Why Uber will win the scooter wars," 6 Aug. 2018 Sometimes, a fan will point out synergies with an idol—recently, Michael Jackson—which inspires Rousteing to keep pursuing Balmain’s codes further. — Vogue, "Balmain’s Exuberant-As-Ever Pre-Fall 2019 Menswear Channels Pop Icons and The Little Prince," 14 Nov. 2018 While Sonder does have a team of in-house designers, the synergy of their partnership with the Novogratz team was only appropriate for such a unique project. — Lucia Tonelli, ELLE Decor, "Three San Diego Bungalows Are Transformed Into Vibrant, History-Filled Getaways," 3 Oct. 2018 With such synergy, Kokosar swears that these looks are still pretty off the cuff. — Steff Yotka, Vogue, "Street Style Stories: Ada Kokosar on Color Coordination and Starting a Look With Your Shoes," 7 Sep. 2018 The companies are seeking to double synergies to 10 billion euros by 2022 from 2016. — David Welch, Bloomberg.com, "Nissan, Renault in Talks to Merge, Create New Company," 29 Mar. 2018 Other factors could come into play: anticipated pedestrian traffic, synergy with nearby businesses, a commitment to improve the storefront, matching funds from a landlord or community. — Jon Chesto, BostonGlobe.com, "Lawmakers hope tax credits can help fill vacant storefronts," 9 July 2018 Meet The Bug Burger—a spin of the traditional burger recipe that creates a synergy between new ingredients and old classics. — Shannon Barbour, Cosmopolitan, "IKEA Has Gone Too Far With Its New Bug-Filled Food Options," 13 Mar. 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.

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Last Updated

7 Jan 2019

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Time Traveler for synergy

The first known use of synergy was in 1632

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More Definitions for synergy

synergy

noun

Financial Definition of synergy

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

synergy

noun