Research On The Development Strategy Of Shandong Traditional Chinese Medicine Industry Based On Industrial Value Chain

Objective: The research on the development strategy of shandong Traditional Chinese medicine(TCM)industry by industrial value chain enriched the relevant theories of industrial chain,value chain and industrial value chain in different commercial environments.Compared with other provinces,the current situation of the upper,middle and lower reaches of shandong TCM industry and the knowledge industry of TCM was sorted out,to find the advantages and disadvantages of its existence as well as opportunities and threats.At the last,the strategy was formulated for the future development of shandong TCM industry,and the references were provide for the government to formulate industrial planning,for the enterprises to formulate development strategies,and for the TCM industry to transform and upgrade.Methods: First of all,the literatures of the relevant theories and research status about industrial chain,value chain,industrial value chain,TCM industry,Internet thinking were gathered and analyzed by the literature analysis,to understand the evolution logic of theory in different business environment,to grasp its essence and determine the research direction and scope of this paper.According to the theory of the industrial chain,the present situation of shandong TCM industry was analyzed by means of data statistics,chart illustration,comparative analysis and field survey.Moreover,SWOT model was used to analyze the advantages and disadvantages of the company,the opportunities and threats based on the external environment.Finally,the core guiding ideology of industrial value chain was used to determine the development strategy of shandong TCM industry in the redefinition of TCM big health industry.Results: With a new perspective combining relevant theories with different stages of economic development,to explore the business logic behind the theory,Every theory of economics or management must be adapted to its historical background.Therefore,it was necessary to re-examine the business environment of shandong TCM industry under the current Internet background.By the research on the TCM industry in various provinces,it was found that shandong was far behind the other provinces,urgently need to strengthen the theoretical research and management in the field of exploration,and to feed back the management practice of TCM industry,eventually to improve the comprehensive strength of TCM industry through the interactive development and mutual nourishing of industry promotion and industrial research.During the study,a large amount of data was collected and analyzed,so that to clarify the present situation of the industrial links of TCM industry,middle and lower reaches and Chinese medicine knowledge industry.Compared with the other provinces in the country,Compared with the historical data and evolution process of their own development,the industrial characteristics of each link were summarized objectively.The SWOT model is a well-known strategic analysis tool for enterprises,industries or regions.Using the model to carry out various analyses,It was concluded that the TCM industry in shandong had the advantages of industry chain,including the rich of Chinese herbal medicine resources,the development of farming and aquaculture,leading enterprises to form strategic positioning,remarkable achievements in scientific research and innovation,The basic formation of industrial chain.It had the disadvantages,including unbalanced development of all links in industrial chain,low concentration degree of industry,low correlation degree and synergism of the industrial chain,and the weak of overall innovation.From the outside,it had unprecedented opportunities for industrial restructuring and upgrading,including industrial policy support,changes in consumer demand and health concepts with China’s strong economic growth,China’s enhanced position in the global value chain.Of course,it also had theats,including international natural drugs to impact on traditional Chinese medicine,the speed of innovation in other provinces in China,the blurring of industrial boundaries under the new business environment,and the cross-boundary impact of other industries on the TCM industry.Finally,the development strategy of shandong TCM industry was pointed out in the redefined big health industry of TCM by the theory of industrial value chain.Conclusion: According to the theory of industrial value chain,the distribution of value in the industrial chain is always unevenly distributed,and it is in dynamic adjustment with the change of business environment and production factor value.Shandong TCM industry was redefined in the big health industry of TCM.The upstream planting industry can get through with the professional market of the downstream Chinese medicinal materials,which gave full play to the resources and germplasm advantages of the upstream daodi herbal medicine,and redefined the core value of the professional market of Chinese medicinal materials.The middle reaches industry carried on the strategic choice,either to do the ecology in the whole industry chain,or to do the specialized field product group.The downstream industry carried out the merger and acquisition integration of the commercial circulation link,created the added value and solved the pain point of the industry.TCM knowledge industry undertook industrial alliance,cooperated to build scientific research innovation system.