The benefits of the merger are obvious. The two companies don't need to continue to use a lot of money to compete for users from each other. On the contrary, they have formed a monopoly position in the market, and the development of enterprises has become more smooth since then.
In fact, this kind of thing is not only common in the Internet industry, but also in other industries, such as the beer industry.
Once a beer giant, together with Tsingtao Brewery, it is called "Southwest King".
In 1980s and 1990s, the beer industry was very popular. There were thousands of breweries all over the country, and even many foreign beer brands were eyeing the big market of China.
Because of this, there is overcapacity in the beer industry. In order to better expand the market, some large-scale breweries choose to buy breweries in other regions, resulting in a large number of domestic beer brands.
At that time, Lan Jian beer was very famous in the beer industry, with the title of "Southwest King". It is understandable that it can get this title.
Lan Jian Beer was founded on 1985. It is a private enterprise raised by employees, and it took only a few years to become the first beer market in Sichuan Province. It can be said that it was a beer giant at that time.
Lan Jian beer occupies about 85% market share in Sichuan. At the same time, it also has high sales in Guizhou, Yunnan and other places. At one time, it almost monopolized the beer market in southwest China, even surpassing Tsingtao beer. But until now, few people know about it.
At the peak, China Resources Snowflakes hit, and the losses of two competing Lan Jian reached 60 million.
Lan Jian Beer is a local beer brand in Sichuan, which developed very well at that time, but when the development momentum of Lan Jian was very good, the Sichuan market was targeted by China Resources. China Resources did not choose to directly launch a money-burning war with Lan Jian, but chose mergers and acquisitions.
Before entering the Sichuan market, China Resources first acquired Snow Beer and owned its own beer brand. After that, China Resources began to make an offer to Lan Jian, but it was rejected by Lan Jian.
In this case, China Resources did not insist on buying Lan Jian, but first bought Mianyang Asia-Pacific Brewery for 90 million yuan, and then bought Leshan Blue Ribbon Brewery for 50 million yuan. At the same time, the beer produced by these two breweries is also named Snow Beer, so that China Resources Snow Beer also occupies a large share in the Sichuan market.
In this case, Lan Jian Beer, as a local local strongman, feels threatened. So I bought 10 local brewery in one breath and started a tit-for-tat with China Resources Snow Beer.
In order to seize the market share in Sichuan, the two breweries provide customers with a more favorable way, that is, customers can pick up the goods first and then pay, so their products appear in the market in large quantities. At the same time, Lan Jian Beer also started the price war with China Resources Snowflake.
However, this series of measures did not bring any benefits to the two companies. The final result is that Lan Jian Beer loses 60 million yuan each year and China Resources Snowflake loses 20 million yuan each year.
After the joint venture, 2.5 billion yuan was sold to China Resources, and now it has been forgotten.
Three years later, Lan Jian Beer lost a lot of money, and its founder finally lost his temper. Therefore, Lan Jian Beer and China Resources Snowflake sat at the negotiating table for the benefit of both parties.
After negotiation, the two groups decided to cooperate, so on 200 1, China Resources Lan Jian Beer Joint Venture Company was jointly established, with China Resources accounting for about 60% of the joint venture company. After that, the joint venture company sold Snow Beer and Lan Jian Beer in the market at the same time. In just one year, the income of the joint venture company reached 80 million.
Although Lan Jian and China Resources formed a win-win situation after the joint venture. However, with the passage of time, Lan Jian found that the sales volume of Snow Beer was increasing year by year, while the sales volume of Lan Jian Beer was declining.
So, on June 5438+ 10, 2007, Lan Jian Group offered 2.5 billion yuan to sell about 40% of its equity in the joint venture company and all the assets of Lan Jian Beer to China Resources Group.
Because of this decision, many senior shareholders of Lan Jian Group have become multimillionaires or even billionaires. Because of this decision, the brand of Lan Jian beer gradually declined until it was replaced by Snow Beer and disappeared in the market. So far, little is known about Lan Jian beer.
Although Lan Jian Group still exists today, it has been transformed into a drinking water enterprise, which has nothing to do with beer brands.
Many people think that the success of China Resources Snow relies on a large number of mergers and acquisitions and a large number of market promotion.