Why do multinational corporations like to acquire companies in Country Z so much
Because the undeveloped market in Country Z is so tempting.
Country Z is not only a country with a large population and astonishing consumption potential, but also has thousands of years of splendid cultural heritage, which makes foreign capital salivate. Moreover, the people of Country Z are very hardworking and pragmatic, and they create high value and have astonishing creative efficiency.
For example: People from country Z will not be competitive at all if they go to Italy to open a hair salon.
Hair salons run by Italians have a fixed eight-hour operation every day, and they will refuse customers when the time is up.
However, the hair salons opened by people from country Z are open 24 hours a day. They adopt a three-shift system, which is more flexible and maneuverable.
For example, an Italian can only cut 50 heads in eight hours and earn RMB 5,000; a Chinese can cut 150 heads in 24 hours and earn RMB 15,000.
Both efficiency and value earned are three times higher than those of Italians.
One hundred and fifty heads is the embodiment of creative efficiency.
Fifteen thousand yuan is the embodiment of value creation.
In these two aspects, no country in the world can compare with Country Z.
It’s not that foreign capital has not tried to invest in Country Z’s attractive market. However, after entering Country Z, they could not compete with local companies in Country Z due to the problems of value creation and efficiency creation. At this time, acquisition is their means of taking advantage of their situation.
This kind of acquisition is very cruel. On the one hand, it can directly obtain the mature sales channels, market network, talent team and customer resources of Country Z enterprises; on the other hand, by acquiring competitors, there is a chance to eliminate competitors, directly shelve their brands, form a monopoly enterprise that is beneficial to oneself, and thus make huge profits.
When they can’t compete with you, they just spend money. This is the most powerful, yet the most despicable, tactic used by multinational corporations.
Foreigners have never concealed their ambitions in the business world, just like their disgusting behavior many years ago when they launched a joint war of aggression against Country Z because they had their eyes on its wealth.
Violent and direct!
It is extremely painful and disgusting.
Wen Xinya could have predicted the chaos at Lanxin Company. She paused for a moment and said, "Foreign multinational groups that like to engage in malicious acquisitions and mergers have always had a huge appetite. Health care brands are the fattest piece of fat in Country Z. Since they have set their sights on it, it is impossible for them to only eat Lanxin Company. No matter how good Lanxin Company's development potential is, it is not a listed company and may not satisfy their appetite. As long as the other party is rich and powerful, why can't they catch them all in one fell swoop?"
Is it worth the other party's efforts for a mere Lan Xin
Of course not!
The development history of health care brands in Country Z is too shallow and its foundation is too weak. Although the development situation in the country is very good, there is really no health care product that can grow and develop at home and abroad and become a powerful behemoth that people dare not provoke.
It is precisely because of this that it is easy for foreign multinational corporations to acquire these state-owned enterprises without any effort. The key lies in the word "money"!
Since you have the ability to eat a whole piece of fat, why would you choose to eat only one piece
Yan Shaoqing was startled, somewhat incredulous: "You mean, they are not only targeting Lanxin Company, but also other domestic health brands?"
Although there are many domestic health care brands, there are not many brands that are strong, have a good reputation, and occupy the market. Therefore, if the other party is eyeing the entire health care brand market of Country Z, as long as they acquire the top three health care brand companies in Country Z, they can completely monopolize the market.
This is what foreign-funded enterprises often do.
He actually didn't think of that.
Yan Shaoqing was extremely annoyed.
Wen Xinya said, "I think it's pretty close. I'll ask Ouyang Feng to check the stock markets of several other health care product companies. If nothing unexpected happens, we'll soon know who this venomous snake hiding in the dark is."
If the other party really has such a big appetite, his actions will naturally not be too small, and it would be impossible to hide himself.
Wen Xinya's cool but rational voice came from the phone, analyzing the current situation in a clear and logical manner, which gradually calmed Yan Shaoqing's anxious heart of the past few days.
Yan Shaoqing took a deep breath and once again regained his calm and composed self: "If that is really the case, then the opponent's strength will be even more unfathomable. More importantly, they are well prepared and aggressive. I am afraid that Lan Xin will have a tough battle to fight."
Being able to acquire the top three domestic companies together proves that the other party’s strength is extremely formidable. This is the most serious problem facing Lanxin Company.
Wen Xinya frowned slightly, was silent for a while and asked, "What is the current situation of the company?"
No matter how well prepared or how aggressive the opponent is, the first thing they need to do is to keep themselves steady and not lose their composure, so that they have the power to fight back.
Yan Shaoqing said: "The company's situation is relatively stable. With Zheng Yifan in charge, there will be no problems for the time being."
Zheng Yifan is indeed an outstanding management talent. When there were unusual situations in the stock market, he took a series of measures, which not only stabilized people's hearts, but also temporarily stabilized the stock market. However, the specific situation depends on subsequent developments.
Wen Xinya nodded: "For the time being, we should hold our ground. If the other party wants to forcibly acquire Lanxin Company, they must control at least 30% of Lanxin Company's shares. According to the current situation, the other party is acting in secret, so they will be subject to many restrictions. It will probably be difficult to complete the acquisition of the remaining 10% of shares. The most urgent task is to arrange the company's affairs and then find out the other party's identity."
Although foreign-funded enterprises are scary, are they really invincible
Wen Xinya curled the corners of her lips coldly. She might not think so!
Yan Shaoqing listened to her methodical and rational arrangements for the acquisition, took a deep breath and said, "I understand!"
In his eyes, Wen Xin has always been a magical girl who is best at creating miracles and legends.
Wen Xinya added: "Send me the latest report on the Lanxin Company stock market and all the analytical data. Lanxin Company will hold an emergency meeting of senior management at 10 a.m. tomorrow."
She still needs some time to get to know the basic situation of Lanxin Company.
After hanging up the phone, Wen Xinya gently rubbed her swollen and aching temples and couldn't help but sigh. Vicious acquisitions are an inevitable process of global economic development. If companies from Country Z want to participate in international competition, they must go through many tests. This is the first step for Lanxin Company to enter international competition.