A Case Study On The Transformation And Upgrading Of Wanxiang Group

Wanxiang Group, a Chinese private enterprise, which came to birth to in plannedeconomy and now become a international company engaged in global auto industry, isa typical enterprise which realizes transformation and upgrading in the global valuechain. Facing the challenge of reindustrialization of America and Europe and thecompetition of cheaper workers in Asia, Chinese companies have to try to transferfrom low level to high level in global value chains. It’s a guidance to study the reasonof Wanxiang Group’s success for Chinese companies.This articlereviewed the study of Wanxiang Group and the Global Value Chaintheory. Then it analysis the transformation of global value chain of auto industry inAmerica and the transformation and upgrading of Wanxiang Group. At last, it came tosome conclusion and suggestion.Empirical evidence demonstrates that Wanxiang’s transformation and upgradingmeets the conclusion of Global Value Chain on the whole. It is the use of comparativeadvantage outside the company and ability inside the company that affect itstransformation and upgrading.