Appliance Chain Enterprises In China M & A Research

There are three main channels of home appliances in China: malls, chain stores and brand stores. Since 2000, chain stores have rapidly developed for their three major advantages: lower prices, stronger expansion of commercial brands and their popularity. From 2003 to 2008, chain stores industry has met with ten or more M&As initiated by GOME, SUNING, YONGLE, etc. The industry then is taken up by GOME, SUNING and WUXING (BEST BUY) rather than GOME, SUNING, YONGLE, WUXING, and DAZHONG previously.Why do such massive M&As emerge in domestic home appliance? Is the performance of M&A significant? What are the problems during M&A and what should be done to solve those problems after M&A? Problems proposed above will be discussed respectively and relative suggestions or solutions will be given.This paper is organized as follows: In Chapter I, background of the problem, literatures, aims, significance and novelty of this paper are introduced. In Chapter II, concepts of M&A, including the definition of M&A, the types of M&A, the motivation of M&A and the performance of M&A, are given. In Chapter III, external and internal motivation of large-scale M&As are analyzed. In Part IV, by using factor analysis, we analyze the M&A performance by the Case that GOME merged YONGLE, and the performance of M&A is not significant. Finally, the paper points out the problems existing in home appliance chain stores in and after the M&A. Some proposals are also raised to solve these problems in this chapter.