Motivation And Performance Analysis Of Alibaba’s Acquisition Of Ele.me

In China’s rapid economic development,competition among enterprises has become fiercer.If an enterprise wants to stand out in such a turbulent situation,develop the market quickly,and expand his core strength,he must get improved in technology.What’s more,Internet industry is emerging in China.Many giant companies have taken advantage of the spring breeze of development to occupy many markets to constantly increase their business scope and improve their profitability.Many companies have chosen mergers and acquisitions to enter new industries,break industry barriers and enhance their strength.The increase in mergers and acquisitions activities has led scholars from various parties to gradually start to study the motivations and causes of corporate mergers and acquisitions whether corporate mergers and acquisitions have achieved the expected goals and get profits.This article uses a mergers and acquisitions case between Alibaba and "Ele.me" to reasonably analyze the motivations of Alibaba’s mergers and acquisitions and uses a combination of event analysis and balanced scorecard performance evaluation methods to explore the merger to satisfy Alibaba’s mergers and acquisitions motivation.The event analysis method uses the stock price as a model to evaluate the stock price fluctuation and impact brought by Alibaba in the short-term merger and acquisition time.While the balanced scorecard performance evaluation method comprehensively analyzes and summarizes Alibaba’s mergers and acquisitions events through four dimensions:finance,customers,internal processes,learning and growth.This article analyzes the short-term and long-term aspects,which covers the company’s financial data,the company’s future operation and development,and the company’s core technology.Finally,the performance evaluation results of mergers and acquisitions are integrated with the conclusions of various aspects.Through analysis of these aspects,it was found that Alibaba has completed its merger and acquisition goals,successfully built the Alibaba ecosystem,and integrated its own "Word of Mouth" and "Ele.me" to increase customer usage.However,in the process of mergers and acquisitions,some unfavorable situations have appeared such as increased financial risks and reduced market share.The reason for these situations is that Alibaba uses a large amount of cash flow to conduct mergers and acquisitions,and has not fully planned in the early stage of mergers and acquisitions.Therefore,this article is based on a mergers and acquisitions case between Alibaba and "Ele.me" to get summarizes the conclusions,and gives some suggestions for China’s corporate mergers and acquisitions including that companies should choose more diversified mergers and acquisitions,and do a comprehensive merger planning work in the early stages of mergers and acquisitions.