Governance Of Global Value Chain And The Research On Yacht Industry Upgrading For China

Globe Value Chain (GVC) gains its systematic competitive strength through integrating companies who have comparative advantage in every value production links. Different company has different role and position in the system of GVC and so does the country they belong to. But only some of the links in the GVC system could produce high added value -we call them strategist links. The company who could gain these links could control the whole GVC and the whole industry. Or the company will be a follower and be controlled by others. Different position in the GVC also represents the power and competitive strength of the country which different companies belong to. At present, most of the companies of China act as followers in their GVC system. They don't have power to control the whole GVC, lack competitive strength and only gain low added value. So the purpose of this thesis is to find an efficient way to upgrade our industry's position in the GVC and enhance the competitive strength of our companies.The theory of Globe Value Chain has provided a good way for us to analyze industry upgrading from the view of the actors who join in the whole governance process, especially for the purpose to analyze the follower's upgrading. Based on this train of thought, we draw the Globe Value Chain drawing according to the different driving forces and different governance patterns firstly. And then we found out the upgrading paths and way for the follower. We make the conclusion that the upgrading path for the follower or the local industry in the Globe Value Chain droved by the Producer is from an un-supplier to be a supplier in a Hierarchical pattern Globe Value Chain and to be a supplier in a Quasi-Hierarchical pattern Globe Value Chain and to be a supplier in a Network pattern GVC and then to be a supplier in the whole industry and so become a leader in this or another Producer-driven GVC; For the follower in the GVC droved by the buyer is from an un-supplier to be a producer in a Hierarchical pattern GVC and to be a producer in a Quasi-Hierarchical pattern GVC and then to be a producer in the whole industry and so become a leader in this or another Buyer-driven GVC.This paper analyzes the upgrading path and way about the yacht industry of China. Generally speaking, China's yacht industry involves in a kind of Network pattern GVC mainly droved by developed countries'producers who own famous brands and known-how. The disadvantage of losing world famous brands and low level of designing and low range of quality and yacht level lead our industry in a position of follower in GVC. Our companies could only do some simple assembling working procedure producing low-level value or be electrical appliance producers whose profits are also very low for the cruel market competition. So industry upgrading for China's yacht industry is very important. For the companies, they should know the urgent of upgrading and make long-seeing plan at the beginning trying their best to upgrade from a labor suppler only to a GVC Producer. As an assist the local government should establish a good market environment. With the joint effort, China's yacht industry could get a bright future!...