In 2003, TCL, as the vanguard of high-tech enterprises in China, took the lead in blowing the horn of internationalization, advanced into France and directly acquired Alcatel's mobile phone business. It marks that China enterprises have finally stepped out of the consistent internationalization mode of "self-expansion" and started to understand and be familiar with another leap-forward internationalization method. In the applause of public opinion, countless international companies have become the dream development model of domestic enterprises, and enterprises that want to develop myths again with "snake swallowing elephants" are ready to move. Then Zhejiang Huali acquired the R&D department of Philips mobile phones, the former Delong USA acquired it, and Lenovo acquired IBM's PC business at the end of 2004.
Lessons from the past: When will TCL and Alcatel merge?
At that time, Wan Mingjian, the father of TCL mobile phone, was a little unwilling to answer the question of how to truly integrate the company. He said that to truly integrate, this process is like the feelings of two people. It may be love at first sight, or it may be a long time, so it is difficult to judge. But "from the legal definition, Alcatel will be fully merged into TCL from the agreement in four years." However, for Alvater, which lost 80 million euros in 2003 and has been losing money for three consecutive years, for TCL mobile phone business, which has fallen from a profit hero to a big loss, four years is too long, and every day is counted!
However, the difference of corporate culture is like a nightmare, which puzzles and destroys TCL's once beautiful wishes. Alcatel, who comes from France and has noble ancestry, has always taken "honesty" and "rules" as the guidelines, giving these service providers too many good memories. "Although Alcatel's mobile phone has been financially strapped since it entered the China market, the cooperation with the outside world is" always pleasant and understandable ".
Based on a blood-related customer interest, Alcatel has achieved good synergy with the upstream and downstream industrial chains, which is also the brand effect of Alcatel; The rules of "honesty" and "rules" enable Alcatel employees to form a harmonious personal relationship with these mobile phone service providers. However, Alcatel, which merged into TCL, began to weaken or even give up the nature of French enterprises. Alcatel, as the terminating party, did not consider the interests of both parties in detail when proposing to terminate the contract, and took the initiative to propose corresponding solutions.
According to the data, the staff of Alcatel's after-sales service department revealed that they had put forward their own ideas about recovering downstream channels to the company before, but unfortunately they were not adopted in the end.
According to Alcatel's practice, before the introduction of various rules and regulations, a feasible scheme will be worked out under the operation process, and all after-sales service providers only need to implement it step by step according to the specified time. This time, Alcatel and downstream channel providers have lost their direction of action.
Looking at the precedents of international mergers and acquisitions, it is difficult to become a universal law to love each other and kill each other and get along simply. For example, HP bought Compaq, Bi Bo bought Andersen, and Oracle Bone Inscriptions bought PeopleSoft. For China enterprises, similar "snake swallowing elephant" acquisition is a shortcut, which can quickly gain core technology, brand and market influence. However, the crux of this "snake swallowing elephant" acquisition method entering the international market lies in: China enterprises lack international management experience, have not accumulated in how to manage international enterprises several times larger than themselves, and especially know little about the management of the huge and complicated sales and logistics systems of international companies. The resulting financial risks are also fatal. Judging from the huge acquisition funds in the early stage, the large amount of net liabilities assumed and the service fees in the later stage, these huge funds will lead to the tight capital chain of the company. If we want to make up for the huge losses of the acquired company, then the huge financial risks faced by the company are obvious.
It remains to be seen whether TCL's internationalization strategy in 2004 is just the eve of nirvana or a sign of slipping into the abyss.
Reflections on Lenovo's acquisition case
On June 8, 2004, 65438+February 8, Lenovo Group Co., Ltd. signed an important agreement with IBM. Lenovo Group will acquire IBM's Personal Computer Division (PCD) and become an international large-scale enterprise with strong brand, rich product portfolio and leading R&D capability. The assets acquired include all IBM notebook and desktop computer businesses and related businesses, including customers, distribution, distribution and direct sales channels; "Think" brand and related patents, IBM Shenzhen joint venture company (excluding its X series production line); And R&D centers in Daiwa (Japan) and Raleigh (North Carolina, USA); The total transaction amount is $6543.8+$25 million. Lenovo will pay IBM $650 million in cash and $600 million worth of Lenovo Group common stock for a lock-up period of three years. And IBM will hold about 65,438+09% shares of Lenovo Group, and Lenovo Group and IBM will form a long-term strategic alliance in the fields of global PC sales, service and customer financing.
In this way, Lenovo will become the third largest computer manufacturer in the world after Dell and Hewlett-Packard with the help of IBM's PC business, and will become the first state-owned private enterprise to enter the global top 500. But can we get out of the "iron law" that is difficult to integrate after mergers and acquisitions?
The road to integration is by no means smooth. Deborah Nelson, global vice president of HP Personal Systems, once said that Lenovo's main challenge is to expand outside the familiar China market, and performing on a world-class stage requires more than just channels and supply chains. In addition, Lenovo will face many problems, such as lack of brand awareness outside China, fierce price competition in the global computer market and cultural conflicts caused by merger.
Dell, the founder of Dell, said frankly in an interview with the Financial Times: "When was the last successful merger of the computer industry?" The implication is that it is not easy for Lenovo to really form a decisive battle with Dell. Even after the merger, the global market share of new Lenovo is less than half that of Dell, and up to now, Dell's expansion has not stopped. HP's acquisition of Compaq is a ready-made example. The new HP is based on the integration of R&D production, sales and procurement between the two companies. Even so, the recent performance has not satisfied Wall Street, and several HP executives have lost their jobs. To sum up this problem, there are three main methods to turn losses into profits in the short term by mergers and acquisitions between companies in the same industry: unified procurement to reduce costs, reducing employees with overlapping functions to reduce costs, and cross-selling new products to old customers to increase income. When the merger and acquisition of elephant swallowing has become a chicken rib of the enterprise, if the integration of culture, brand, human resources and sales service cannot be completed in a limited time, will the result of elephant swallowing be a stronger elephant or a weaker snake? Even if it succeeds in the future, is it worth the price? Is the snake that swallows an elephant an elephant? A snake? Let's wait and see!