The Comparison Research On The Integration Strategy Of Chinese Cement Enterprises

The cement industry is an important component of national economy, owing to the guidance of government policies and the impact of competitive situation of the industry, the cement enterprises are seeking for space to further their development in severe market competition. The resemblance of cement production, cost pressure, decreasing profits, accelerating M&A, the emergence of regional leaders and the invasion of foreign enterprises have added more difficulties to the development of Chinese cement enterprises. A suitable strategy is vital to their survive of the competition. By frequent merger and acquisition, enlargement of scale, they employ the integration strategy to get over these problem, win the drive to move forward, and then competitive advantage over the others. This is an inevitable choice. And meanwhile, we realized that despite of the wildly spread of integration strategy, different effects could happen to each enterprise; therefore, we discuss the differences and provide theoretical explanation and managerial implications.We attempt to research the integration strategy of three enterprises:Hailuo, Jidong and Tapai which represent leading enterprises in country and regional scope. They are typical among all the enterprises across the nation. Their growth are largely decided by the strategy that they are implementing. We start from the concept of integration strategy and the factors behind it, to find out the strength and weakness of the integration strategy, and then decide under which circumstances should we take advantage of it. In this paper, given the characteristic of the cement industry, we made the conclusion that integration strategy is an ideal option for the advancement of the cement enterprises. We also concluded some basic principles to follow and ways to implement the integration strategy successfully, so we can have a full understanding of the potential risks. All this makes us know the overall effect of integration strategy.Even though, we should look at the positive side of it and make rational assessment and handle it carefully, it will finally turn to be very useful. We estimate the trend of the cement industry, and provide some practical ways to make the best of integration strategy.