Research On The Motivation And Performance Of M&A In IT Services Industry Based On The Whole Industry Chain Perspective

The "Whole industry chain" is a development concept put forward by COFCO Group in 2009,which adopts the combination of vertical and horizontal mergers and acquisitions,realizes vertical penetration and horizontal synergy with suppliers,retailers,competitive enterprises and cooperative enterprises in the industry,and interweaves vertical dimension and horizontal dimension to form a spatial network of the all-round industry chain layout.With the continuous development of science and technology,the scope of competition among information technology service enterprises has also expanded,gradually changing from the core business competition to the vertical dimension of each node of the product competition and horizontal dimension of competition in a number of market segments.This paper takes BONC Science and Technology Co.,Ltd.as an example,which is an information technology service company that carries out mergers and acquisitions in the whole industry chain from 2013 to 2015.It has carried out four horizontal mergers and acquisitions and four vertical mergers and acquisitions respectively.This paper studies the motivation of mergers and acquisitions in the whole industry chain from the perspective of industry competition and enterprise growth,this paper analyzes the five competitive forces in the information technology service industry by using Porter's five-force model,applying the theory of enterprise growth combined with the characteristics of the industry,based on the Balanced Scorecard(BSC),this paper analyzes the impact of M&A on enterprise performance,and studies the market performance of M&A in the whole industry chain by Tobin Q-value method and event study method.Generally speaking,the market performance of Dongfang Guoxin's mergers and acquisitions in the whole industry chain is remarkable,and the performance in the financial dimension,customer dimension,internal process dimension,innovation and learning dimension has been improved.Finally,this paper draws relevant conclusions and puts forward countermeasures and suggestions for other similar enterprises to refer to and learn from.