Value Creation Of Corporate Headquarters With Horizontal Integration

This research is a context-embeddedness study in the case of strategies have been identified, market segmentation of china as a background, to study the value creation of corporate headquarters with horizontal integration, and under the influence corporate with horizontal integration should take which way of value creation to benefit the realization of strategic intent and interactions with the environment.By reviewed the literature, the article summarized the value creation the headquarters, the methods of horizontal integration and the theory of international with market segmentation hypothesis, analyzed the causes of market segmentation in China and its impact on horizontal integration of enterprises, on the basis of theoretical models of parenting advantage, constructed the value creation model of the headquarters of the enterprise with horizontal integration, and to explore the decision-making of market portfolio and the headquarters to improve the fit between market portfolio and the headquarters.Through literature review and theoretical analysis, this paper had the following conclusions: (1) The situation of market segmentation in China was mainly by the impact of institutional factors in the transformation period, made the corporate faced the choice of obtaining both economies of scale and local response, bring the market entry barriers, market integration barriers and market management barriers to the implementation of horizontal integration strategy. (2) The realization of value creation of corporate headquarters with horizontal integration depend on the matching between the features of headquarters and which of market unit, and constructed the value creation model of the headquarters of the enterprise with horizontal integration on the basis of theoretical models of parenting advantage. (3) The decision-making of market portfolio need divide the market boundaries, determine the scope of the market, and analysis the role of market unit by role model for the market unit of corporate with horizontal integration (C-S model), and make decisions on market portfolio of merger, division, self-establish and acquisitions. (4) The decision-making of headquarters, affected by market segmentation, integration potential and the characteristics of their own, show the different management mode, created value by matching with market portfolio.This study explored the application of parenting advantage theory under the situation of inter-regional diversity, constructed the value creation model of the headquarters of the enterprise with horizontal integration, and learned the research of international theory to study the issue of enterprise strategy in the special context of market segmentation in China to make some sense in theory. Meanwhile, it provided a reference for the management mode of corporate with horizontal integration and the role of the headquarters, and it also had some means to corporate practice.