Fashion Industry Value Chain Governance Model And Effects

With China’s rapid economic development, companies require moreand more collaboration; meanwhile the collaboration type is morediversified. Within a completed industrial chain. It is difficult for a solocompany to fully realize the value chain process, from raw materials tofinal product delivery to consumers. Thus during industry collaboration,companies need to find their strategic positioning to build their own corecompetencies, while integrating the needs of upstream and downstreamenterprises to realize their own value.Value chain theory has been fast developed, expanding from the earlyMichael Porter’s value chain to the later theory of virtual value chain andvalue network theory. This paper will study these classical theories, basedon these theories, exploring the main chain of the value chain governancemanagement model. Namely in the entire value chain, companies couldplay as owner of it, leading upstream and downstream value chains, andultimately realize the role of customer value. Company could break outlimitation at internal governance manage only, instead through a virtualcollaborative control the entire value chain, get maximum value from thevalue chain Lord’s leadership, organization and management model has adirect impact on the entire value chain benefits and value proposition oftheir own enterprises.This paper focuses on the fashion industry, analysis and proves theimportance of the virtual value chain management. Fashion industry is atypical industry segments which span the entire value chain of different aspects, Fashion companies could find its value proposition with valuechain, gain value base on its strategic advantage. Further on, throughintegration upstream and downstream resources get more value. Thosebig fashion industry player should act as leadership of the whole relevantindustry group to efficiently manage them involved in upstream anddownstream enterprises, with the fastest speed corresponding to rapidlychanging market, otherwise will quickly be eliminated.Virtual value chain management approach also extremely affectsvaluation. One simple approach is become the passive part of the valuechain in a simple way. Or company could choose intensive management,participation, collaboration in all aspects of the upstream and downstreamvalue chain business in depth participatory approach, the final resultsobtained differ. Value chain governance model become the company’ssoft power has become an important part of the company valuation.