Research On Business Model Based On Vertical Integration Strategy

To speed up the pace of business growth, rapid scale operation, effective against market fluctuations and to overcome production bottlenecks chain management shortcomings, Many companies are in favor of vertical integration strategy. There has a proven and unique business model behind every great company, which is a key in the market competition to implement the strategy of vertical integration. Therefore, analysis of business models based on vertical integration strategy to become the first problem to be solved. Based on this, this paper attempts to explore the enterprise business model based on vertical integration, we hope find the general law hidden behind the complex phenomenon, in order to improve efficiency of enterprises.First of all, This article traces the domestic and international research on business models and the theory of vertical integration strategy, discusses the distinction between corporate strategy and business model and the characteristics of the business model. and then, this article proposes the framework of the business model based on vertical integration. We conclude that the framework of business model based on vertically integrated composed of the factors affecting the business model of system, business model system, support system and business model update. This paper focuses on the business model system, divided into the value analysis, value proposition, value network, value delivery and value of five parts, which are further divided into five parts of 18 elements, these elements are interrelated and interdependent.At the same time, many factors play an important supporting role on the effective operation of the business model, as external and internal conditions change, business models will continue to change through self-adjustment. After the implementation of vertical integration business strategy. Its business model represents the enterprise business logic, Clarify the logical relationship of business model have an important role in guiding the development of enterprises.