Pingguo Aluminum Vertical Integration Of The Development Of Strategic Research

It is vital to follow a right strategy when a firm faces keen domestic and abroad competition. Almost all of the world successful aluminum companies are vertically integrated in a deep level. Should Pingguo Aluminum carry on the developing strategy of vertical integration that she presently adopts? This is a question of practical significance and urgency being put in front of Pingguo Aluminum.In this dissertation, a brief introduction is given about the academic achievements that categorize vertical integration into four motivations, including technological efficiency, transaction cost, property rights and competition strategy orientation. Also in this dissertation, as far as vertical integration in Pingguo Aluminum is concerned, an assessment based on data from practical operational is worked out upon direct and indirect benefits in terms of technology, transaction, scale economy and risk relieving; analyses are conducted on various deficiencies of vertical integration practice in Pingguo Aluminum; suggestions and alternatives are presented on how to strengthen and further the vertical integration of Pingguo Aluminum, taking into account of the environmental factors and the firm's characteristics.The study not only answers the questions relative to the development strategy of Pingguo Aluminum, but also is reference-worthy to all aluminum firms, and probably metallurgical firms of other types.