China Loader Industry Strategic Restructuring

Nowadays, the merger and acquisition of the global industry of construction machinery becomes more and more sharp, on one hand, in order to strengthen the core competition, at least 45% of the American and European companies of construction machinery have finished their mergers and acquisitions, as a result , these companies get more and more categories and markets of their productions.On the other hand, domestic construction machinery companies have mended their pace of the acquisition because of the macro contraction and slowdown of the investment on permanent assets. At the same time, the adjustment of the China industry architecture has taken some effects, but most of the domestic companies of loaders industry are facing some disadvantageous facts such as the little scale, the high liability rate, the low centralized degree, the dispersive investment of the capital and technology and limited level of the professional cooperation. At present, the merger and acquisition of the domestic companies is still in the initial stage. Although, there are a variety of models, some problems, for example, the low-benefit capital developments and government operations of tie-in sales, still exit. Therefore, what the domestic companies of loaders should solved urgently are breaking the existed structures and competitive methods, improving the large-scale allocation of the resource and triggering the upgrade of the whole competition.At first, according to the study on the development history and trend of the foreign loaders industry, combining with the current state of the domestic loaders industry, analyzing the strategic background of the domestic company acquisition by the means of SWOT analytical method include the strength, weakness, opportunity and threats. Obviously, in order to adapt the development trend of the global loadersindustry, the most urgent affair is increasing the pace of the transition from the adjustability to stratagem..After this, we can design the acquisition of the domestic loaders industry. First, the targets and thoughts: 1. integrate the loaders industry by the means of mergers, 2. increase the competition rapidly by the strategic alliances, 3. improve the core competition by assets reorganization. Furthermore, the projects of strategic acquisition: 1. the projects of horizontal acquisitions, 2. the projects of the value chains integrations, 3. the projects of strategic alliances, 4. the arrangements of acquisition projects by the industrial areas or ecological groups. Besides, on the basis of the designs of the projects, I researched and discussed the relevant countermeasures and measure through three aspects include the policies and rules of law, the government countermeasures and measures, the acquisition feasibilities of the global company. Moreover, I researched and discussed the problems to be solved during the course of the acquisition such as keeping the value of official capital, controlling the management groups, transforming the status of employees, the long-term development, enlarging the market, conserving and maintaining the brands, classifying the productions, at the same time, there should be some strategies to prevent the vicious purchases.In a nutshell, according to the analysis of the case of Shandong LinGong Construction Machinery Co.Ltd, Undoubtedly, the most important and urgent affairs are the inner-resource optimization configuration and enterprise resource integration by the help of the strategic investors from other industries.