Research On Internationalized Vertical Integration Of Industrial Chain In The Chinese Nature Rubber Enterprises

Natural rubber is an important strategic resource, which has its industrial chain’ upstream connected with agricultural sector and downstream related to industrial production units. China is the largest consumer of natural rubber in the world. However, due to its limited location condition, China can’t produce sufficient natural rubber for domestic use and every year China need to import the majority of its demand from other countries. The biggest challenge for China’s natural rubber industry is the imbalance of supply and demand, and Chinese natural rubber enterprises are normally located in the downstream of the industrial chain and suffering from the uncertainty of supply and price volatility. How to integrate the industry chain resource becomes a hot topic for Chinese natural rubber enterprises.The thesis first introduces the relevant theories of industrial chain and international economics, analyzing the world’s natural rubber industry as well as China’s and pointing out the challenge China’s natural rubber industry is facing, and make the conclusion based on the case of Sinochem’s internationalized vertical integration of industrial chain:the vertical integration of industrial chain toward internationalization is a effective way to enhance the competitive advantage of Chinese natural rubber enterprises. In the end, some proposal has been given to Chinese company’s industrial chain integration strategy and hope to give some inspiration.