1. Introduction
Increase of market scale
Competition controlling a fever between existing rival companies
New corporation's market entry (Resale carrier or reseller)
Sales amount decrease than growing market
Marketing oriented competition (price, product, advertisement)
To heighten share through mergers and acquisitions
2. U.S Market.
Americans spent about $ 14 billion on inter
increase rate of sales
Ineffective use of stockholders’ investment
Expected higher stock price in ‘07 & ’08.
More effective use of assets
Affected by the drop in NPM
Makes more profit from sales
Affected by the drop in net income
Merger & restructuring charges: -195
Impairment of goodwill: -199
Merger & restructuring charges: -21
Currency exchange loss: -25
price.
6.3. What new strategies would you advise your company to pursue to increase its competitive advantage?
Mergers and Acquisitions Mergers and acquisitions have become one of the most important corporate-level strategies in the new millennium. Merger and acquisition strategies are important to firm’s growth and success in the 21st century. As Ryanair continues to grow it is expected
merger)의 일증인데, 그것은 미국의 독점금지법인 클레이톤법 (Clayton
Act)이 개정되어(제7조) 기업 간의 수평적 수직적 합병이 금지됨으로써 이
법을 우회하면서 기업의 다각화를 실현시키기 위한 한 방편으로 생성 발
달한 것으로, 서로 관련이 없는 이종기업 간의 결합, 혹은 수평적 합병과
수직적 합
that it did not have any antitrust objections, Delta completed its $2.8 billion acquisition of Northwest.
● Current trends
- They use variety social network service program and global network.
-Affected by rise of an oil price. Because airlines most big expense is fuel tax.
●Current strategies
① Launched global joint ->20 May 2009. Air France KLM group and Delta Air
prices collapsed. YouTube proceeded to put pressure on movie studios and television to produce quality video content, and gave them prominent channels, which announcements could present premieres of short films and television. Also came to place ads before the start of a video, but then discovered that 70% of users left the site before it was over.
YouTube's relationship with TV production comp
founds Trucks and heavy equipments industries in emerging market shows high growth rate
PMI(Post-Merger Integrational)
Even though the M&A is the current new trend,
M&A's success rate is less than 50%.
Failure's reason -> No PMI
Maybe uncertain of M&A's synergy effect
Possibly High Acquisition Premium
But majorly due to no plan for PMI
But Volvo considered……
: Coupons, tasting event, Lotte Cinema
- Middleman Promotion
: Mainly Financial aid or Discounting
Lotte in BAD Situation
1) E-MART & Hyundai Dep. Never helps
2) Lotte Mart doesn’t help Since it is completely
separate company.
Threats from its Competitor, Shinsegye
1) Good Channels : E-MART
2) Low Price Product
was huge, and the many
companies, which were involved with derivatives,
could not but suffer big damage.
② Loss of trust in the market can cause immediate stock prices fall and business failure should keep in mind.
Transparency management, responsible business and the foundation of confidence by establishment of internal control system became The best Capital.
Merger contract with Jinro
Ⅱ. Domestic drinks industry introduction
Beer is very important position as tax income because ratio of drink tax holds in tax savings of our country.
Public of drink industry
grains policy
commodity price policy
people health hygiene
defense industry
Liquor tax contributing to national economies
Free trade of grain by WTO