Research On Motivation And Strategy Of Cross-border Mergers And Acquisitions Of Western Sporting Goods Enterprises

Since 2010, numerous national sales outlets of the sporting goods enterprises have been closed due to poor management, the increasing inventories, the development of our country’s sporting goods business came into a recession.Compared with Western developed countries, China’s sporting goods business is lack of high-tech content in sports goods, sporting goods’ added value is low, small-scale sporting goods companies are more competitive, and not as developed Western countries sporting goods industry formatting more large-scale sporting goods business.China’s sporting goods industry has no longer lasted the 30-years of comparative cost advantage led by export. Throughout several world economic crisis,we can see that each time after the economic crisis, there is always a large number of enterprises engaged in M ??& A activity, they hope that through a series of mergers and acquisitions and strategic restructuring initiatives, so as to become bigger and stronger enterprise and to recover their business performance levels. In the above background, China’s sporting goods industry can make a choice of overseas acquisitions of their common concern. Therefore, the study of how Western countries’ sporting goods companies form big business through horizontal M & A,and the formation of a monopoly in the industry competitive market structure, so as to improve international competitiveness will be make sense.It can help China’s sporting goods industry to achieve overseas expansion, and promote further development. China’s sporting goods industry can learn from the advanced experience of cross-border M&A of the sporting goods industry in Western countries,has access to advanced technology, sound management and a wealth of marketing experience of western sports goods industry. Sporting goods enterprises should actively carry out cross-border mergers and acquisitions, and complete horizontal integration to expand market share and to obtain core competitiveness.In this paper, through collecting a large number of domestic and foreign literature and statistical data, we will analysis comprehensively the market distribution of Sporting Goods Enterprises of Western countries,as well as explore the cross-border M&A motivation of Sports goods enterprises, through analysis of specific success stories of the cross-border M&A of Sports goods enterprises in Western countries, we can make reference for our sports enterprises and thus put forward policy recommendations. This paper discusses the following four parts:The first part is the establishment of the theoretical basis of cross-border M & A of Sporting Goods Enterprises. Firstly, to define the concept and connotation of "sporting goods enterprises" and "cross-border mergers and acquisitions", so as to define a conceptual framework to limit the scope and content of research papers;then,to review the theory of cross-border M&A, so as to build the theoretical basis of cross-border M & A of the sporting goods enterprises.The second part is the analysis of the development situation sporting goods business and cross-border M & A Motivation. We will study the need to obtain economies of scale, the need to optimize the allocation of resources, the need to expand market share, the need to pursue technological progress, systematically analyze cross-border M & A Motivation of Western sporting goods enterprises.The third part is to build a model of Western sporting goods enterprises transnational strategic choice based on game theory, divided into the Quote solicitation stage of signaling game theory model and transaction negotiation stage ofbargaining game theory model. What’s more, we will use the real cases cross-border M & A of Western sporting goods enterprises to validate the model.The fourth part is to provide reference for our sports enterprises to go abroad, to achieve cross-border mergers and acquisitions through the study of Western sporting goods companies. We make policy recommendations from achieving economies of scale to reduce our sporting goods production costs; obtaining high-tech to realize China Sporting Goods Industry Upgrading; broadening marketing channels to expand our market share in the sporting goods business, etc; and from the M & A process issues perspective, particularly from Quote solicitation stage and transaction negotiation stage to propose appropriate policy recommendations, and from the integrated management system, the integration of corporate culture, the integration of human resource aspects to propose post-merger integration strategies.