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Reasons for network M&A

Date:2015-11-05 Source: Shangpin China Type: website encyclopedia
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1、 Independence is hard to survive, and alliance is powerful
Mergers and acquisitions of companies can form economies of scale. The merger and acquisition of multiple factories under the leadership of the same enterprise can bring about certain economies of scale, which can be manifested in saving management costs, marketing costs, concentrated research costs, expanding enterprise scale, and enhancing the ability of enterprises to resist risks. With the adjustment of the entire Internet industry, the competition of some small and medium-sized Internet companies has become increasingly fierce, and the living environment has further deteriorated. Venture investors no longer favor the Internet, even some small and medium-sized Internet companies Website Design It is very difficult for the company to survive independently. Therefore, some network companies have gradually joined together to establish e-commerce logistics distribution system and capital payment settlement system, share customer resources together, and change competition into mutual assistance.

 Network M&A

2、 Talent complementation and team building
If an enterprise has an efficient management team whose management ability exceeds the needs of managing the enterprise, but this group of talents can only achieve their efficiency collectively, and the enterprise cannot release energy through dismissal, then the enterprise can purchase and merge those enterprises with low efficiency due to the lack of management talents, and use this management team to make profits by improving the overall efficiency level. This is the synergy of enterprise management. The competition of modern enterprises is the competition of talents. For e-commerce, whether it is BtoC online supermarket or BtoB enterprise goods procurement, excellent professional talents are always scarce. In recent years, the talent competition between IT companies and network companies has become white hot for several times, and the employee income of these companies has always been higher than that of other industries in China.

3、 Resource integration and effective sharing
For the acquisition and merger of online companies, it is not necessarily required that the merged party have much value independently. However, it is required that the merged online company have special resources, such as a travel website to purchase and merge a website for air ticket booking services, which is often a website for air ticket booking services. For travel websites, You don't need to build the resources of this website. The reason why Sougu China bought Chinaren.com at a high price is that it is interested in the educational network market channel resources of the website. The acquisition of a particular asset by an enterprise is often an important motivation for mergers and acquisitions. Special assets may be some special assets that are crucial to the development of enterprises. For example, land is an important resource for enterprise development. Some powerful and promising enterprises are often difficult to expand due to the narrow space, while other enterprises with poor management and depressed market occupy more land and superior geographical location. At this time, advantageous enterprises may purchase inferior enterprises to obtain their superior land resources. In addition, M&A may also be to obtain the effective bamboo management team, excellent researchers or professionals, proprietary technology, trademarks, brands and other intangible assets owned by the target enterprise.

4、 Technical expertise to make up for deficiencies
Many websites have formed unique technological advantages in one aspect during their operation. These technological advantages themselves cannot create huge wealth. However, combining these technological advantages with the operational advantages and technologies of some network companies can form very good system services, which can obtain huge economic benefits, Therefore, it is worthwhile for the acquirer to acquire these network companies with unique technical advantages in one aspect.

5、 Global operation
It has always been said that the Internet has no national boundaries and takes all orders. Therefore, the international merger and acquisition of network companies has become an inevitable trend. Due to the information and functions of the website, materials can be browsed and used by users in any corner of the world through the Internet. Although there are still many restrictions on business operation, culture and language, it is an inevitable trend for Internet companies to operate internationally. In order to enter some foreign network markets, many network companies are very willing to purchase and merge network companies with certain domestic markets.


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