China's Construction Industry Enterprises Vertical Merger Integration Strategy Study

Under the background global financial crisis and domestic economy decelerated growth, the construction enterprise was has been put on more concerning. Considering the domestic and foreign economic situations and construction enterprise's characteristic, the construction enterprise of China should take road of longitudinal merger and acquisition to become Profession Construction Enterprise of our country, to get rid of the present difficult position and to enhance core competitiveness.This article analyzes the current situation in the construction industry: the international financial crisis on the construction industry more seriously affected our country, the domestic lack of influential leading building enterprises, a variety of new contract model in the international construction market called the large-scale and able to provide a package of services construction enterprise.In the same time, construction enterprise are characterized by: in the industry disorderly competition status of atomic-type competition; the Economies of scope better than economies of scale; labor-intensive; regional strong. Therefore this article get the conclusion: In order to adapt to the current situation, and enhance core competitiveness, construction enterprises must follow the way of vertical integration.According to the longitudinal merger and acquisition theory research, this article has analyzed the longitudinal integrated, and take a typical longitudinal merger and acquisition conformity's case to study. There are several conclusions for Construction Enterprise longitudinal merger and acquisition conformity in our country: Derives the correct market localization according to the correct market analysis; After the merger and acquisition strategic conformity must take establishing the core competitiveness as a subject; After the merger and acquisition's company governs must realize unitizing, the standardization, the systematization in the control system.; After the merger and acquisition, must pay attention to leadership's establishment; To resolve a clash of cultures after the merger we should pay attention to communication.