Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 49 , 01 December 2023


Open Access | Article

Analysis of Didi Dache and Kuaidi Dache Merger: Operational Strategies, Motivation, and SWOT Analysis

Tingjun Rong * 1
1 School of Economics and Statistics, Guangzhou University, Guangzhou, 510006, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 49, 15-19
Published 01 December 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Tingjun Rong. Analysis of Didi Dache and Kuaidi Dache Merger: Operational Strategies, Motivation, and SWOT Analysis. AEMPS (2023) Vol. 49: 15-19. DOI: 10.54254/2754-1169/49/20230471.

Abstract

In recent years, the scale and number of mergers and acquisitions (M&A) between companies have been steadily increasing, with M&A becoming the primary choice for expanding their businesses. However, M&A between internet companies often involves many uncertainties. This paper first analyzes the operational strategies and merger motivations of Didi Chuxing and Kuaidi Dache (now DiDi and Dida respectively), and then applies the SWOT analysis method to analyze the strengths, weaknesses, opportunities, and threats of this merger event. Finally, the paper summarizes the pros and cons of this merger event and provides recommendations. The research findings of this paper indicate that the merger motivations of this merger event mainly include reducing market competition pressure, achieving resource integration while expanding market share, and seeking more development opportunities. The SWOT analysis shows that the strengths lie in resource integration and internationalization, the weaknesses involve strategic risks, the opportunities can be harnessed through synergy effects, and the threats involve potential negative impacts of monopolies on the market. By formulating the correct strategic theories, enhancing core competitiveness, and effectively utilizing synergy effects, the success rate of corporate mergers and acquisitions can be improved, providing feasible ideas for M&A in China's ride-hailing industry.

Keywords

Didi, Kuaidi, strategic merger

References

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3. S Zhang & S Lu.(2017).Risks and Precautions in Internet Company Mergers and Integration - A Case Study of the Didi Dache and Kuaidi Dache Merger. Enterprise Management(04),108-109.

4. X Zhang.(2018).Analysis and Reflection on the Motivation of Internet Company Mergers - A Case Study of Didi Chuxing's Acquisition. Contemporary Economics(14),50-51.

5. L Song & J Qin.(2020).Motivations and Risks of Internet Company Mergers - A Case Study of Didi Chuxing's Acquisition of Uber. E-Business Journal(10),45-46.

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-145-2
ISBN (Online)
978-1-83558-146-9
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/49/20230471
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated