A Study On Merger And Acquisition Strategy Of Sg Company, Base On Competitive Strategy

While the future of bath & sanitary market in Euro and US is not clear, the market in China is surely ramping up. It's time for the manufacturers, focus on export for years, in China, to change their business model, to catch the opportunity of sharing the cake of China market.There are cities provide total solutions including product designs, material, manufacturing, sales, export / import logistics in Pearl River Delta of China. The industrial distribution of bath & sanitary in Pearl River Delta of China is complete. There are enough conditions to found a big bath & sanitary company in this area.I analyzed the 10 years ago industrial structure and competitive position of SG company, and found that SG company chose Overall cost leadership- Focus Strategy. SG company took Vertical Integration, and Horizontal Integration to restructure her value chain. However, when she implemented her strategy, she didn't take M&A as an important way to grow up soon. That mistake made SG company's competitors caught up with SG company. SG company is now at a disadvantage.Nowadays, after analyzed the industrial structure and competitive position of SG company, I suggest SG company chose Differentiation - Focus Strategy. SG company should took Vertical Integration to restructure her value chain, and took M&A as an important way to grow up soon. SG company should chose the target basic on competitive strategy. SG company should took fund-raising as an important process, while low down the investment on manufacturing. After M&A, SG company should integrated them as quick as possible.