“LinkedIn took a step today to build up its presence in China, and China’s Uber rival Didi Kuaidi took a step to make more inroads into the U.S. tech industry: the two companies have signed a deal to form a strategic partnership covering product integration, technology, recruitment, and brand development.”
This news brought me passion to investigate into the merger or strategic alliance between Chinese and U.S. company. I think the mergers or alliances between companies in this two powerful countries are really exiting to both countries. It is quite different from forming a monopoly because the organizations which agreed to merge or signed a strategic alliance are from different but related industries.
Just like this recent news, the business-related social network company decided to cooperate with the mobile platform taxi-calling application company DIDI(Chinese version of Uber), which will benefit both of them. For DIDI, the passenger(consumer) could connect with driver and rate them, in this way DIDI does not need to audit its driver because the rating system already does the job! For linkedin, apparently this strategic alliance is helping it build more memberships. As a result, DIDI could maintain its market leadership, against its US rival Uber, and linkedin could gain more market share in Chinese social networking market, against Facebook.
So, in conclusion, It is basically good for company to form the merger or strategic alliance. The “synergy” effect will work!