Research On Business Model Based On Vertical Integration Strategy Transformation

In order to control the whole process of the raw material supply, product manufacturing distribution and sales, enhanced the initiative of enterprises in the market competition, resist the market fluctuations effectively, more and more enterprises are in favor of vertical integration strategy which would be one of the ways of to control the industrial chain resources effectively, enlarge the scale and achieve development. More and more managers realize that there has a proven and unique business model behind every great enterprise, and there needs to be a business model which is effective and matches with the strategy after vertical integration strategy transformation. Therefore, analyses of business models based on vertical integration strategy transformation become an urgent problem. At present, the research of the business model still belongs to the exploratory stage. There isn't unity of understanding of the concept, structure and system of business model. Based on this, this paper attempts to explore the enterprise business model after strategy transformation, we hope to find the general law hidden behind the complex phenomenon, in order to improve efficiency of enterprises.First of all, this paper makes literature review, tracing the research results of the business model and integration strategy. And then, it describes the relationship between the enterprise strategy and business models, and expounds the content and drivers of the vertical integration strategy. After that, according to the theories of vertical integration strategy and business model, this paper proposes the structure framework of the business model based on vertical integration strategy transformation, the three elements of business model which is customer value, resources and ability, the profit pattern. Finally, it proposes the strategy of the business model based on vertical integration strategy transformation, such as re-defining customer, resource integration and improving organization synergy etc, to provide the practical ideals and guidance to the enterprises which want to implement integration strategy.