Research On The Value Chain Integration Of Haier Smart Home’s Acquisition Of Candy

The wave of reform and opening up is booming,and cross-border mergers and acquisitions are rising.Home appliance industry in China is embedded into the global value chain by OEM and ODM.However,our country’s home appliance enterprises generally lack patented R&D technology and brand marketing channels,enterprises in developed countries occupy both ends of the value chain with high added value for a long time,which firmly chokes the throat of the development of home appliance enterprises and intensifies the competition of domestic home appliance enterprises.For the sake of breaking the bottleneck of enterprise development,the government has formulated several policies which wants to facilitate and guide enterprises to try cross-border mergers and acquisitions,expand the market,seek overseas opportunities for developing and upgrading of value chain.However,the high risk of failure and the lack of integration are still the problems which urgently need to be solved.Based on the above background,this paper selects the case of Haier Smart Home’s acquisition of Candy as the research object,through the analysis of the current situation of Haier Smart Home’s value chain,post-merger value chain integration,and post-merger integration performance,and discusses home appliances from the perspective of value chain.From the perspective of value chain,this paper discusses the current status and existing problems about mergers and acquisitions of home appliance industry,analyzes the reasons for the high failure rate and tries to explore a path that conforms to the value chain upgrading of Chinese home appliance enterprises.Firstly,the paper sorts out the relevant parts of m&a and value chain in domestic and foreign literature,analyzes the relevant theoretical basis,and lays the fundamental tone of this paper;secondly,it introduces the acquisition of Candy by Haier Smart Home,and explores the motivation of the acquisition based on the status quo and development strategy of Haier Smart Home’s value chain;thirdly,analyze the Haier Smart Home value chain integration measures from three dimensions: upstream value chain,internal value chain and downstream value chain;finally,analyze the value of this acquisition from the perspective of financial effect and non-financial effect.For the financial effect,combined with the changes of financial data before and after the integration,it is concluded that the value chain integration of the cross-border M&A Candy is smooth;for the non-financial effect,the integration of the merger conveys the good operation of the information,realized the extension of the value chain of the enterprise,and played a certain reference role in the merger and integration of enterprises in the same industry.Based on the case of Haier Smart Home’s merger with Candy,this paper hopes to study the successful experience of mergers and acquisitions and value chain integration in the home appliance industry,and put forward four constructive suggestions for mergers and acquisitions and subsequent integration of home appliance companies: prudent implementation of mergers and acquisitions,demand for diversified payment,and emphasis on value Chain integration and establishment of a sound regulatory system.Through the research of this paper,I hope to provide general proposals for the integration and development of enterprise mergers and acquisitions in the household appliance industry.