Motivation Study Of M&A In Oligopoly Industry

M&A is one of the main ways to Scale expansion and also an investment for enterprise. M & A is developing with a very rapid speed in the short period of 20 years in our country, the transaction volume and scale is continue growing with the development of economy. The market force is stronger and stronger with the enterprise scale expanding, more and more industries have the characteristics of an oligopoly market. M&A is also occurred frequently between the enterprise in oligopoly industry, not only large enterprise acquisition small ones, but also large enterprises strong United. However, the probability of successful M & A is very low because so many enterprises lack of a clear motivation of mergers and acquisitions or the motivation is very simple.On the basic of previous research, the thesis attempts to use Michael Porter's value chain theory to verify the motivation of M&A in the oligopoly industry of our country with theoretical research and case study methods. First ,the thesis set up the 3S analysis framework on the basic of strategic, situation and structure, and analysis the impact of strategy/situation/structure from the perspective of Cournot equilibrium, then set up the model of M&A and the control model value chain integration, conclude that the motivation of M&A is to achieve the strategic objectives of enterprises ,to improve business conditions, to optimize the industry structure ,in order to optimize the value of chain , finally verify the conclusion of the thesis with the case of Shanghai steam purchase Nanjing steam."A good beginning is half done", learning the motives of M&A is very critical to the implementation of mergers and acquisitions, as well as the result of the result of mergers M&A. So the motivation study of M&A in oligopoly industry in the thesis can give some guidance to the M&A on oligopoly industry, such as the coal, oil, white goods, automotive and other industries.