Studies On Enterprise M&A Strategy Based On Core Competence

With the development of economical globalization and china entering WTO, Chinese enterprises faced with more and more great competition pressure. In order to adapt such environment, Chinese enterprises need to promote their competitive power to grow stronger. To rise competitive power has many ways, M&A (merger and acquisition) is an effective way to raise company's competitive power. But the success rate of M&A in our country is very low. How to enhance the success rate of M&A is an emergent,significant topic.This article firstly analyzes the reasons of low success rate of M&A in china. And then summarizes it to a key point: the reason of low success rate of M&A in china is because the enterprises have not been able to implement the M&A strategy based on core competence. Then we reviewed the development history of M&A and core competence theory, on this foundation, studied the relationship between enterprise core competence and M&A strategic, and proposed the core argument of this article: the interaction relations hypothesis of M&A strategic based on the core competence. According to general rule of constructing enterprise core competence, we established the theory foundation of M&A strategy based on the core competence; then proposed M&A strategic model to instruct M&A practice. The paper analysis and proposed that we should pay attention to the key question in the implementation of M&A strategy process. Finally we analyzed the relationship between the M&A strategy and M&A performance, and then we proposed the thought of using BSC (balanced scorn card) to measure the performance of M&A strategy implementation, thus establishing a dynamic model to guarantee a successful implementation of M&A strategy.