Research On The Influence Of Cross-border M&A On The Joyson Electronics' Core Competence Of Corporation

With the rapid development of China automotive industry in recent years,China automotive electronics industry is growing in scale.But “large but not strong” is still the significant feature of the competitive industries in China.The foreign automotive electronics giants,with technologies and market barriers,monopolize the high-end automotive electronics market,grab the majority of the profits.The fundamental reason for this situation is the lack of core competence of Chinese enterprises:the lack of core technologies,the well-known brand and high-quality customer channels,result in competing the domestic low-end market only.In facing of the rise in the labor costs and the decline of the price,so that the already low gross margin is further declining.China automotive electronics enterprises are facing a huge survival crisis.In this context,Joyson Electronics has successfully found a road with "Joyson Characteristics" through continuous merger and integration.Focusing on automotive electronics and car safety,the company has achieved giant leaps in technology transformation and upgrading,industry internationalization and capital platform breakthrough in just seven years,spanning from domestic automotive functional parts suppliers to global multinational enterprises with world leadership in high-end automotive electronics and car safety.This paper use the research method which combined theoretical and empirical analysis,taking two Joyson Electronics M&A cases as the starting point,the German Preh,USA KSS and Takada of Japan respective,to analyze the reasons for the success of Joyson Electronics M&A and the influence of the cross-border M&A on the core competence of corporation,looking forward to providing a way and thinking for the transformation and upgrading of enterprises in China.First of all,this paper explains the topic's background and significance,the content and method of the research.Based on the theory of cross-border M&A and core competence of corporation,it examines the relevant concepts and builds the framework of the influence of the cross-border M&A on the core competence of corporation.Then introduces the background of China's automotive electronics industry,compares the ways of obtaining core competency between the two foreign automotive electronics giants,Bosch and the Continental respectively.On this basis,it introduces the general situation of Joyson Electronics,the process of M&A and its way of obtaining core competency: focusing equal attention to both endogenous and extension.Secondly,this paper focuses on analyzing the two cross-border M&A cases,explain how to obtain the core competence from two aspects: "right-bought" and "well-used"."Right-bought" analyses the motivation,target and timing of cross-border M&A,and knows that Joyson Electronics' cross-border M&A have bought the core competence,the resource likes technologies,market and brand etc.with appropriate target scale and right timing."Well-used" introduce the integration measures of strategy,organizational structure and human resources,management and corporate culture,analyze the synergistic effect through the financial indicators such as operation,finance and management,Joyson Electronics has achieved the goal of M&A.Finally,according to the framework of the influence analysis of cross-border M&A on the core competence of corporation,this paper evaluates from three directions: core management,core technology and core market respectively.By comparing and analyzing the changes of core competence before and after cross-border M&A with different indicators horizontally and vertically.it isconcluded that Joyson Electronics cross-border M&A establishes the idea of obtaining core competence of corporation,and succeed to promote its core competence through cross-border M&A.Joyson Electronics have achieved the transformation and upgrading through cross-border M&A,which enlightens Chinese enterprises:enhancing core competence through cross-border M&A is a shortcut to become a global multinational enterprise;it is important to clarify the development strategy of enterprises,basing on the situation of the enterprise,take high-quality enterprises in the industry as the target of M&A,and grasp the right timing;the effective integration is the important guarantee of the success of M&A,meanwhile the key to the success of M&A is to enhance the core competence of enterprises.