Research On The Impact Of Vertical Integration Strategy Of Industrial Chain On BYD’s Performance

In recent years,the government has continuously introduced various subsidy policies for the new energy automobile industry,making the new energy automobile become the focus of attention of automobile enterprises,but it is still very unstable at present.Especially,new-energy automobile enterprises are always restricted in the upstream industrial chain,so the integration of industrial chain has gradually become the development trend of new-energy automobile industry.However,many automobile enterprises only consider short-term benefits when implementing the vertical integration of industrial chain,ignoring the guiding role of enterprise strategy in the overall financial performance of enterprises,and ignoring the integration of funds after the implementation of mergers and acquisitions,leading to difficulties in the implementation of strategy,and unable to play the real guiding role of strategy.In addition,judging from the development trend of automobile industry in recent years,the scale of global automobile industry is getting larger and larger,and the competition between domestic and foreign models of automobiles leads to the weakening of BYD’s cost advantage,and the sales volume of new energy vehicles is decreasing instead of increasing.Therefore,in order to improve BYD’s financial performance,it is necessary to comprehensively analyze BYD’s financial performance,and then analyze and determine the important factors affecting the company’s financial performance.The level of BYD’s financial performance directly reflects the company’s ability to continue operating.If the company’s performance continues to decline,the risk of bankruptcy will increase.Therefore,it is inevitable to conduct financial analysis on the company in this context.However,many enterprises in the implementation of strategy after the single use of financial indicators for evaluation,too one-sided.And at present,in order to enhance the capacity of enterprises in the strategic management,the balanced scorecard has become an irreplaceable tool in terms of evaluation of enterprise strategic performance,can through the comprehensive analysis to enhance enterprise performance management level,but currently on the market the enterprise did not make full use of the balanced scorecard to comprehensive evaluation from the aspects of financial and non-financial’s own benefit.This paper expounds on analysis of vertical integration strategy,BYD industry chain selection evaluation method of the balanced scorecard to enterprise’s performance from different aspects such as finance,internal process level,customer level and comprehensively evaluate the enterprise innovation and growth level,the performance of in-depth industry chain vertical integration strategy for BYD,find problems and put forward the corresponding strategic management countermeasures,finally improve the level of corporate earnings,that has a certain contribution.