At the same time, also somebody thinks, small businesses and rising star should adopt more horizontal mergers, complementary advantages, the use of integrated grow their own strength, improve the core competitiveness. How much is the enterprise based on the fundamental with market share of. Merger integration can produce scale effect, not only can integrate the resources of market, have twice the result with half the effort. In structural overcapacity, under the situation of competition, merger and acquisition to a certain extent, reduce duplication of investment, reduce the vicious price competition, and enhance the overall resist risk ability. Outbreak of lighting market expectations, on the other hand, many enterprises choose to complete capacity through mergers and acquisitions, channels, patent resource integration, talent and market.
Industry insiders predict, before 2013, the 360 degree LED industry consolidation stage. In the face of market is about to usher in explosive growth of lighting, LED lighting enterprise in competition, must through the merger, acquisition and reorganization, resource integration, combining, complementary advantages to enhance the overall strength in order to market really broke out of a competitive advantage. The excess production capacity, investment overheating, the status of the price decline, falling profits for the LED industry to create a fully competitive environment, focus on the current industry development, both on the middle and lower reaches of vertical integration and horizontal integration of mergers and acquisitions, has appeared in the industry and gradually into a trend, in the 3W dimmable led candle bulb LED industry reshuffle is accelerating.
In the critical period, however, the vertical integration VS horizontal acquisition, which is LED the way of the development of the company? 3W E14 led such Small make up think, there is no standard answer this question. Development characteristics of each enterprise should according to oneself, draw lessons from the successful experience of the predecessors to choose integration mode, rather than blindly follow in the footsteps of others. Simply for vertical integration or horizontal acquisition is not only two choices. From the perspective of marketing management, horizontal integration and vertical integration of the two ways are not independent existence of two kinds of instruments of integration, often combined with the use of more easy to achieve the balance of resource sharing. For some companies, the industrial chain of longitudinal transverse cooperation would be a better model of development.