The Comparative Study Of Impact Of Horizontal Merger And Vertical Merger Of Duopoly Retailer Of Supply Chain Collaboration

To be competitive in rapid developing China, companies have realized the core-competitiveness's importance, and they are vigorously developing own. Merger become an the effective measure to raise the market share, enhance core-competencies, decrease the risk. Many IPO companies are merging this year, using the funds gathered from capital market.Company should choose wisely between horizontal merger and vertical merger. It should based on company's unique strength, opportunity, weakness, and threat. E.g. after horizontal merger, company may effectively benefit from bigger market share and economy of scale. May also reduce competitive companies and market reliance, develop bargain ability, and finally realize more profits. And after vertical merger, company will effectively coordinate the supplier with its own strategy to reduce risk from upper supply chain, then may reap more benefits from market.None of the company could stop other companies sharing supply chain from emerging, but do will be influenced by their emerging, however this influence will be. As merger and supply chain become hot topic in economic world, we should know more about the impact of merger to supply chain.Comparative study is the spot light of the paper. Because company will choose one kind of merger for better development, and because core company will affect other's emerging to maximize own benefit, and also because our government should supervise the market and make sure the healthy development of supply chain and the whole industry, this paper should be done.