| Automobile industry is one of the backbone industries in China, which has prominent scale economies and close connection with other relevant industries. The core of automobile industrial organization is to obtain scale economies through effective competition. Especially after China's entry into WTO, Chinese automobile industry would face more and more intensive worldwide competitions. So it is significant and urgent to study how to optimize the industrial organization structure, how to realize the reasonable allocation of resources, and how to improve the international competitive power of Chinese automobile enterprises.Based on the theory of modern industrial organization and the SCP analysis model, this thesis draws a conclusion that the automobile industries in Yangtze Delta appear low division and cooperation of work and excessive competition following analyzing the market structure, market conduct, and market performance of the industry in that area. Furthermore, using the theory of games, this thesis also analyses and points out the reason leading into the present situation is over many enterprises and over investment caused by the region partition and local protectionism.Network organization is more flexible than hierarchy inside the enterprise and stabler than the market outside the enterprise. This thesis tries to find the best path to optimize the automobile industrial organization with the theory of network organization and attempts to use the concrete form of network organization to reallocate the resources of automobile industries in Yangtze Delta. Then we can build a three-level institutional framework between large-size, medium-size and small-size enterprises. Thus, a high-efficient industrial organization pattern of orderly competition, co-operation and co-existence will come into being.At last, this thesis gives some policy proposals on how to realize the optimization of industrial organization of Yangtze Delta.
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