M: Mature Industry, New Trends In Drag - Tractors, M & A - Machinery Industry

In face of the tractor market, a large tractor company executives said excitedly

, Pin 2 a million units sold, but also make some money. To "earn money" as the company's "greatest satisfaction," expressed the wish of many agricultural producers of "sad." Although China's large and medium tractors each year industry sales growth, declining profits or even losses, this strange harbinger of what exactly?

Medium-sized tractors in China (hereinafter referred to: in drag) industry has experienced in the last century 90s to 2003, after high-speed growth period, in 2004 became a turning point in its development. Statistics show that from 2004 to 2008 5 years sales were 41,800 units, 77,800 units, 116,200 units, 108,300 units, 115,900 units, an increase of 111.26 percent, respectively, 109.78%, 32.42%, -6.85%, 7.10 %. The one hand, a significant increase agricultural subsidies every year, on the other hand sales growth was diminishing year by year, this phenomenon indicates that medium-sized tractor industry in China has entered the life cycle of maturity.

Mature business competitive environment has changed fundamentally. First, slower growth in market share means more competition. Second, more emphasis on cost and service competition. Third, industries with excess production capacity. Fourth, new product development more difficult. Fifth, declining profitability. 6 is a gradual shift from the domestic competition, international competition. Above represents the basic structure of our country in the drag industry changes, companies must make a strategic response.

Maturity in the industry, forcing companies in the "cost leadership, product differentiation and objective gathering" three kinds of difficult choices between strategies. The pursuit of market share and become one of the determinants of business survival. To improve market share through acquisitions of its basic approach, in order to form a stable oligopoly.

Earlier Fukuda Lovol Manulife International Heavy Tractor Factory on the acquisition of Texas, completed a large, medium and small tractor-based chain of organic integration. John Deere has on the good together, days drag, Ningbo CSI acquisition, achieved its Chinese tractors, combine harvester market, strategic layout. Since then there Yancheng Yueda Mahindra and marriage, the five levy group, the mountain drag the acquisition of agricultural equipment.

M & A process of growing up as a modern enterprise is an important strategic growth model, to overcome the accumulated through its gradual development to achieve the limitation of growth by leaps and bounds for the enterprise possible. Optimization of acquisition of the tractor in our industrial structure, improve the quality of operation play an important role.

This, there are two issues worth considering: First, Why M & A strategy? Second, what effect the rapid formation of acquisitions. M & A to find and core capabilities associated or overlapping industries, but also consider how the internal, external capacity, integration of resources and so on, to ensure the success of mergers and acquisitions.

Successful acquisition strategy has not only related to the core business capability, access to low value of the relevant Key Resources externally, need enterprises have the ability to make comprehensive use of all advantages of the integration of resources. M & A business strategy is independent of the key resources and capabilities to form part of a system. Its success depends both on the resources and elements of their own, also depends on how the various resources complement each other between the elements, to strengthen. This requires that enterprises should pay special attention to the process of acquisition following. First, the choice of target companies, in addition to pay attention to internal and external capacity, integration of resources, but also should be based on core competence, strategic acquisitions, the depth and breadth to continuously adjust its organizational structure, so that business can aid resources access to synergies and achieve mutual coordination. Second, the business performance measures and incentive mechanism should be effective to establish and form the core competence, organizational structure, and performance measurement and incentive mechanisms for the overall development strategy of diversification. Finally, enterprises should attach great importance from a strategic integration of corporate culture, mainly institutional culture, corporate culture, regional culture, management and cultural elements of integration.

by: gaga

POST COMMENT

Jinan: Appliance Marketplace To Launch A New Round Of "enclosure Movement" - Gome, Suning, The New 1.6L Ford Fiesta Engine NDM-1 Vaccine – Be Aware About This New Superbug! Burberry New Products On Sale At A Lower Price Solar Sail - Medical Mattress - China Medical Air Cushion Long Visit To Shanghai Plant Source Of Alarm Chang, General Manager Of New - Long Source, Long The Chengdu 7 10 Million A Year Electricity Energy Saving Lamps Is Imperative - Lamps, Energy Saving, Denver Electric Fireplaces: What Is New For The Winter Season Three Mile Island - A Near Nuclear Environmental Disaster Energy Efficient Denver Wood Burning Stove Options For Your Home Ft. Myers Volvo used xc60 dealers intrigued by new electric Volvo idea Get New Ideas At Dropshippers Forum Celebrate New Year's Eve on a Budget