Infuence Of Vertical Integration On Competitive Advantage

This thesis from the current reality of China Nonferrous Metal Industry’s departure, discusses the impact of vertical integration on enterprise competitive advantage. Although the country’s nonferrous metals industry occupies a certain position in the world. However, due to the relative scarcity of mineral resources, the non-ferrous metal industries and enterprises not only face competition on the same industrial chain links, but also faced with the manufacturer suppliers, manufacturers and distributors of two downstream product market competition from upstream of mineral resources. So the question this study has practical significance.First, this thesis reviews the existing literature and classics vertical integration and business competitive advantage theory discusses the relationship between the existing vertical integration of research focuses on the impact of the integration of dynamic and corporate performance, the vertical integration of the little impact on competitive advantage. Second, this paper introduces the relevant theoretical background and the background after the industrial environment, the difference between the sample enterprises and the industry average level of performance as a measure of the competitive advantage of enterprise standard, and use value-added method of calculation as vertical integration index, and non-ferrous metals listed companies2007-2012panel data for empirical analysis. After screening the data obtained32of192listed companies in the sample observations, the effect of vertical integration on non-ferrous metals industry competitive advantage. Based on the empirical study on the outcome of the discussions, the main results obtained in this study are:(1)China’s nonferrous metals industry, the overall level of vertical integration of listed companies decreased slowly after the first rise.(2)China’s nonferrous metals industry companies degree of vertical integration and competitive advantage is positively correlated.(3)China’s nonferrous metals industry listed companies, state-owned holding enterprises in vertical integration of companies with significant competitive advantages in promoting the role of state-owned enterprises rather than vertical integration of enterprise competitive advantage is no obvious correlation.Finally, from the perspective of corporate decisions and government legislation are bought on offer for the healthy development of non-ferrous metals industry in some policy recommendations, summarized the shortcomings of this article, and the future outlook related research.