vertical integration strategy

horizontal integration strategy

market penetration

Market Development

product development

Diversification

type

advantage

risk

initiative

passive

austerity and concentration strategies

Turn to strategy

abandon strategy

Judgment of enterprise or business conditions

exit barriers

Classification according to the industry in which the merger and acquisition parties are located: horizontal mergers and acquisitions, vertical mergers and acquisitions, diversified mergers and acquisitions

Classification according to the attitude of the acquired party: friendly mergers and hostile mergers

Classified by the identity of the acquirer: industrial capital M&A and financial capital M&A

Classification by source of acquisition funds: leveraged acquisitions and non-leveraged acquisitions

Avoid entry barriers, enter quickly, seize market opportunities, and avoid various risks

Gain synergy

Overcome negative externalities of enterprises, reduce competition, and enhance control over the market

poor decision making

After the merger and acquisition, it is not easy to enter the enterprise integration

Paying exorbitant M&A fees

Cross-border mergers and acquisitions face political risks

The process of developing new products enables companies to gain a deep understanding of the market and products

No suitable acquisition target exists

Maintain a unified management style and corporate culture

Provide career development opportunities for managers

The consideration is lower because no additional amount is paid for goodwill when acquiring the asset

Mergers and acquisitions often create hidden or unpredictable losses, whereas internal developments are less likely to create this

This may be the only reasonable way to achieve true technological innovation

Can be carried out in a planned manner and can easily obtain financial support from corporate resources,

And the cost can be spread over time

lower risk

Internal development costs increase more slowly

The addition of competitors to the market may intensify competition within a certain market

Not having access to other companies’ knowledge and systems may be more risky

Wine lacked economies of scale or experience curve effects from the start

When the market is moving very fast, internal development can appear too slow

Entry into new markets can face very high barriers

The industry is in an imbalanced situation and structural barriers have not yet been fully established.

The behavioral barriers of existing companies in the industry are easily restricted

The enterprise has the ability to overcome structural and behavioral obstacles, or the cost to the enterprise of overcoming the obstacles is less than the profit after entry.

From the perspective of economic organization form, it is an "intermediate organization"

From a business relationship perspective, an equal partnership

From the perspective of corporate behavior, it is a strategic cooperative behavior

Promote technological innovation

Avoid business risks

Avoid or reduce competition

Realize resource complementation

Open up new markets

Reduce coordination costs

Joint venture

Mutual shareholding investment

functional protocol

Enter into an agreement

Establish an alliance of cooperation and trust

create barriers to entry

Enhance bargaining power

Reduce the threat of substitutes

Stay ahead of the competition

market outlook

resources and capabilities

risk

create barriers to entry

Reduce customer sensitivity

Enhance bargaining power

Defend against the threat of substitutes

market outlook

resources and capabilities

risk

There are differences in needs among buyer groups

The target market is relatively attractive in terms of market capacity, growth rate, profitability, competition intensity, etc.

No other competitor in the target market adopts a similar strategy

Enterprise resources and capabilities are limited, making it difficult to achieve cost leadership or differentiation in the entire industry and can only select individual market segments.

Risks caused by narrow target market

Differences in demand among buyer groups become smaller

Entry and competition of competitors

Low barriers to entry or existing barriers to exit

Diverse market demands lead to high product differentiation

There are no economies of scale or it is difficult to achieve economies of scale

Overcome fragmentation and gain cost advantage

Increase added value and improve product differentiation

Specialized target agglomeration

Avoid seeking dominance

Maintain strict strategic constraints

Avoid over-centralization

Understand competitors' strategic goals and overhead costs

Avoid overreacting to new products

common structural features

early entry barriers

Inadequacy of raw materials, parts, capital and other supplies

Customer confusion and wait-and-see

Reactions to substituted products

Shape industrial structure

Correctly Treat the Externalities of Industrial Development

Pay attention to changes in industry opportunities and obstacles,

Take the initiative in industrial development and changes

Choose the right time and field to enter

Establish principles: Rebuild market boundaries, focus on the big picture rather than numbers, go beyond existing needs, follow a sound strategic sequence

Execution Principles: Overcome key organizational barriers and build execution into strategy

Industry: Examine alternative industries

Strategic groups: spanning different strategic groups within the industry

Buyer Group: The buyer group that redefines the industry

Product or service scope: Look at complementary products or services

Functional-Emotional Orientation: Resetting the Functional and Emotional Orientation of Industries

Time: Participate in shaping external trends across time

low inventory

Reduced operating costs spent on inventory

Reduces the likelihood of inventory deterioration, obsolescence or obsolescence

Avoid situations where a large amount of finished goods cannot be sold due to sudden changes in demand

Once there is an error in the production process, there is less room to make up for it.

Production is highly dependent on suppliers

No spare finished goods to meet unexpected orders

internal financing

Equity financing

debt financing

Asset Sales Financing

Capital Asset Pricing Model (CAPM) Estimation

Risk-free rate estimate

long term debt cost of capital

weighted average cost of capital

determining factors

dividend policy

Financial strategies for different stages of the product life cycle

Matching financial risks and operational risks

major factor

Value creation and growth rate matrix

Directly contribute to improving the productive capacity of developing countries