The Study Of Goldman Sachs Vertical Integration Strategy

China instrument market has its special characteristics, five years ago, domesticequipment manufacturers in a relatively disadvantaged position, more than90%ofthe market by foreign equipment manufacturers to share in our country, scientificinstrument research and manufacture of large gap compared with developed countries,high-end precision instruments is heavily dependent on imports, in all walks of life inChina greatly trade surplus. Next, high-end precision instruments has been persistenttrade deficit.In recent years, the domestic high-end precision instruments hasdeveloped rapidly, foreign advanced instrumentation equipment while in Chinaestablished various kinds of trade restrictions, control of advanced technology into theChinese market, but China’s own technical research and development strengthcontinuously increased, homebred equipment parameter approaching foreignequipment.In order to further enhance our R&D capability in funding scientificinstruments, countries from different departments, different levels to establishinnovative instrument R&D funding, and clearly supported by the key direction, fora period of the key research areas, from the key components to key technologytowards the whole machine, until the integrated innovation, in order to form a uniqueand competitive scientific instruments industry.Now, the United States, the European Union in the international financial crisis,trade volume decline, China’s exports of high-end precision instruments andequipment price rises apparently, cause domestic agents profits shrink is serious, theenterprise survival environment more difficult.China "the melamine","poison capsule" events, as well as various types ofenvironmental cases, make domestic analysis instrument research development face more urgent situation, long engaged in the instrumentation industry of all types ofdealers enterprise, facing the opportunity and challenge of enterprise transformation.This paper think the firm organization and personnel, facilities and equipment,system and management already meet the instrumentation manufacturing requiredconditions, its current market share and profit has been faced with bottleneck, toforeign enterprise product depend on the Goldman Sachs is unable to grasp theproduct order price negotiation initiative.Enterprises from capital to industry of activetransition, realize longitudinal integration strategy of enterprises, not only to win theinitiative in the market, will become the guarantee business continuity.Goldman Sachs company strategic transformation is the biggest characteristic byrelying on the original core business, namely foreign agent well-known brandproducts at the same time, the mining enterprise resources and ability and potential,the development of production, create their own brand products, to verticallyintegrated development.According to Goldman Sachs vertical integration strategy research, can make theenterprise transition direction of management, operation mode and its correspondingorganization, change the mode of resource allocation, remodeling, enhance the socialvalue of enterprise competitive advantage, achieve new enterprise form to meet theneeds of the market.The industry’s leading enterprises successful transition for Goldman Sachsprovided valuable experience.In domestic policy and market environment under thedrive of enterprise by the past, development of transverse to the longitudinaldevelopment transition is represent the general trend.