Case Study On The Integration Risk Of The Merger Of Eleme By Alibaba

It has been nearly twenty years since the Internet came into China and has been fully popularized.During this period,the emergence of mobile Internet had opened a new era of the Internet.At present,the number of Internet users in China has reached nearly 900 million.During the period when the growth rate of China's real economy was decreasing,the Internet industry became the choices of more entrepreneurs.The proposal of "Internet +" realized the combi nation of the Internet and the real economy,and the introduction of relevant government policies promoted the rapid and orderly development of the Internet industry in the recent decade.The value of Internet enterprises usually lies in the user flow and business model.In the slow period of user growth,the existing market has become a red sea,and Internet enterprises are often the "law of the jungle".Larger enterprises continue to expand,and new entrants lack effective means of competition,so they are often difficult to survive.With the intensification of market competition,the competition for user resources is becoming increasingly fierce,so mergers and acquisitions among Internet enterprises are becoming more and more frequent.The continuous growth of the amount of mergers and acquisitions is approaching the scale of mergers and acquisitions in the real industry.Internet industry due to the particularity of the business,users cost is lower,the same user can bring in more business in the field of twice the value of the cash,therefore,Internet enterprises begin to devote the mselves to user-based diversified M&A,which is also known as "ecological M&A" due to the close relationship between businesses.Ecological merger and acquisition is a developing trend for Internet enterp rises,which brings opportunities as well as merger and acquisition risks.In the process of merger and acquisition,we should pay attention to guard against various risks.The success rate of mergers and acquisitions in the past is not high,and the unsatisfactory integration effect is the main cause of failure according to the source of risks.There are many differences in the market environment,human resources and organizational structure between the two parties in the merger and acquisition process,which shuouldnot be ignored in the integration process.Therefore,this paper focuses on the study of integration risks in mergers and acquisitions,divides the categories of integration risks,and proposes targeted prevention and control measures from the generation stage of risks.This article selects the case is called "the Internet's largest cash acquisition" at the time "Alibaba" M&A "Eleme",this is a typical Internet enterprise ecological M&A case,"Alibaba" as the pioneer of ecotype mergers and acquisitions,in target selection,strategic planning and integrated measures have a lot of merit,"Eleme" is also a mature Internet catering service enterprise,the two sides in the " alliance between giants " have a lot of experience in the process of practice,but also potential risks to cause alarm,this article also puts forward the corresponding measures to prevent risks,which can be reference for other Internet companies.