Research On The Motivations And Risks Of Alibaba’s Acquisition Of Sun Art Retail Under The New Retail Format

With the rapid development of the Internet,our country has entered a fully connected network era.Emerging technologies such as big data,artificial intelligence,cloud computing are reshaping our Lebensraum."New retail",which focuses on customers and combines online and offline and modern logistics,will become our future development direction.Since the concept of "new retail" was proposed in 2016,companies such as Alibaba and Tencent have been conducting large-scale mergers and acquisitions,laying a solid foundation for the development of new retail.New retail"is a new business form,and the series of mergers and acquisitions carried out by internet companies in search of the optimal implementation method of" new retail "is a very valuable topic.It not only enriches the relevant literature of internet company mergers and acquisitions,but also provides better practical guidance for future internet companies to explore the field of" new retail ".On the basis of reviewing literature on M&A motivations and risks both domestically and internationally,this article combines the case of Alibaba’s acquisition of Gaoxin Retail Store to explore the M&A motivations and risks of internet companies in the context of "new retail",and proposes three strategies for the future development of internet companies.The entire paper consists of six chapters.The first chapter is an introduction,which briefly explains the background and significance of the topic selection,and summarizes the research content and technical roadmap of the paper.Chapter 2 provides relevant concepts and theoretical basis,which provides a detailed discussion on the basic concepts and theories of new retail and mergers and acquisitions,laying a solid theoretical and practical foundation for subsequent research.Chapter 3 discusses the current situation,motivations,and risks of enterprise mergers and acquisitions.By analyzing the current situation and motivations of enterprise mergers and acquisitions,it explores the risks of mergers and acquisitions.Chapter 4 is an introduction to the case of Alibaba’s acquisition of Gaoxin Retail and an analysis of its motivations.It provides a detailed explanation of the basic situation of all parties involved in the acquisition and the motivations behind the acquisition.Chapter 5 is the risk analysis of Alibaba’s acquisition of Gaoxin Retail,analyzing the risks of Alibaba’s acquisition of Gaoxin Retail.Chapter 6 is the conclusion and recommendations of the study.The results indicate that in the new retail wave,the motivation for internet companies to engage in mergers and acquisitions is to seek synergies,enhance market influence,achieve diversification,and acquire core technologies;The risks faced by enterprises in M&A activities include valuation and pricing risks,financing and payment risks,and integration risks,especially the technology and business integration risks in the "new retail" strategy.The article conducts in-depth research from four aspects,namely: the profitability,debt repayment ability,operational ability,and development ability of "Gaoxin" and Alibaba,and evaluates the overall risk of mergers and acquisitions.The author believes that the development path of "new retail" between Alibaba and Gaoxin is a long and arduous one.Finally,the author suggests that enterprises should seize the development opportunities of "new retail" and take the initiative in development;The second is to strengthen the management of "Internet plus" and "Internet plus".Secondly,various measures should be taken to prevent and control the risks of enterprise mergers and acquisitions.The trend of "new retail" is inevitable,and only by concentrating our efforts and working together can we achieve a win-win situation.