Study On The Merger And Acquisition Strategy Of Building Technical Core Competence For SW Automotive Finish Group

With the new trend of the China Automotive Refinish market that consumers are now playing high attention on the cost of the repair service, the demand for the economic product lines turns to be very important for all industry suppliers. In order to develop the low cost product line to win the competition on the mid tie market segment, the international companies began to change their strategy. Aiming to develop the suitable product lines in the short time period and strengthen their market share on the mid tier to low end market, the Merger and Acquisition strategy was used by most of the international companies. Through merging the local company, the international companies can build up the new technical capability to develop the new product lines which can meet the market needs. The success of the Merger and Acquisition will strength the core competence of the international company to win the market share.In this thesis, first of all, the M&A process of the SW company automotive division to merge with Changzhou PLN Company had been introduced and a general path of the implementation of the merger and acquisition integration have been explored. By using the methodology of consulting of related literatures, studying the theories of strategic management; technology innovation, merger and acquisition, a technology integration plan was built up for SW company. Due to the limitation of objective conditions, this thesis mainly adopts the method of questionnaire investigation, interview and case research to understand the present situation and problems of the technology integration after acquisition, and then convert the result of research to establish implementation plan.The comparison analyzes was designed between the SW company Automotive division and Changzhou PLN company in market position, operating ability and technology ability to understand the merger and acquisition strategic of SW company Automotive division. On the other hand, the core competitiveness of the SW company automotive division had been studied in different dimensions. Furthermore, the competition situation matrix between SW company with other major competitors was studied to put forward the SW company merger and acquisition strategy that will focus on advancing technology merger integration by setting up a new organization technical team, the development of technology and innovation ability and product innovation to improve the SW company’s core competitiveness. Finally, with the guide lined on the requirement of the enterprise strategic development, we established the merger and acquisition fulfill plan in human resources and new organizational structure developing, the integration of the company culture, company sustainability innovation establishing through product development to improve the core competitiveness of enterprises.Through the analysis results of SW company mergers with Changzhou PLN Company and the following technical integration process, it can provide certain reference significance for the China Automotive Refinish industry to help enterprises to enhance their core competitiveness through Merger and Acquisition activity.