On The Theoretical Foundation And Its Integration In The Industries In Our Country The Way

Integration inside industry is that the leaders in certain industry, byM&A, reorganization or combining with other enterprises, expandactively its market's share, buildup its competitiveness, then bringchanges to organizational structure of industry and reshape the industrialvalue chain,which targets on the integration and the order in certainindustry, enhances the utilization of resources among the predominantenterprises, reinforces the cooperation between the big enterprises andmiddle or small enterprises, consequently enhances the systematical andthe organizing degree inside industry and enhances the core competenceand the global competitiveness eventually. Integration inside industrydiffer from the ordinary M&A and reorganization, the latter two arediscussed much a lot previously, the former of which has much obviousdifferences in the goal and the actualizer itself comparing to the latter twotypes. The first chapter of this article narrates the content of integrationinside industry and its significance to our national economy. Along withthe development of technology, one nation's advantages in industrialcompetitiveness not only represented by products, also represented by theindustrial value chain. The decomposing and reorganization of industrialvalue chain is adapted to the market's competition and re-collocating ofresources. For industrialization's phase of our country, in whichmanufacture too separated, the rate of centralization isn't high and thetotal scale is huge but the single scale is small, the integration insideindustry is critical and significance to reshape our industrial structure andavail our enterprises joining to the economical globalization. The second chapter analyses the integration inside industry's basesof economic theories and causes. The New System Economics considersthat the enterprise's organization and the industrial organization areinterrelated closely, belonging to the same category, therefore, theresearch in industrial organization must begin with the enterprise'sorganization; "SCP" analysis model is the research method of integrationinside industry. "Whether the high rate of centralization and entryhindrances yield more profit or not through Gaming, co-plotting, settingentry obstacles and restrictively pricing or the combination of thosemeasures." Is one of the main questions in industrial economics. Manypositive researches since Bain, focusing on the relationship of the rate ofcentralization and the capability of yield payoff, have proved that there isa plus correlation between them. However, it is uncertain that whetherthis result coming from Gaming or from co-plotting. There are twoexplainations to this question, one is the "efficiency" theory, another isthe "outer behavior" theory; Horn and Person created the EndogeneticUniting model to analyze the oligarch market that fulfilled competitionand cooperation. They considered the procedure of enterprises uniting asa procedure of uniting gaming, and bring forward that in highcentralization' rate market, uniting can contribute to the forming of aprofit boosting quickly market. In the market economy, the integration inside industry is mainly theenterprise's own conduct, which compelled by its own behalf. Generally,the "accordance effect" is regarded as the main cause for a enterprise tointegrating others even the whole industry. The "accordance effect" canhelp the enterprise to obtain advantages in the scale, R&D, market' shareand avail the technology developing, enhance the "core competitiveness"and so on. Additionally, in the new economy period, the integration insideindustry has a close relationship with the economical technologyenvironment. So, the causes of compelling integration inside industry canbe classified two type, namely the inside ones and the exteral ones. The third chapter analyze the organization structure of our country'sindustries and several problem sin the previously integration activities.The general centralization degree of our country's industries is in the lowlevel compari...