Research On The Vertical Integration Strategy Of A Company

Agriculture is the basic industry to support the construction and development of the national economy.No matter how the society and the times develop,the production and life of the people can not be separated from agriculture.The wholesale market of agricultural products has played a key role in the whole chain of the supply of agricultural products.With the development of the economy and society and the improvement of the living standards of the people,it is urgent for the traditional wholesale market of agricultural products to take a foothold in the traditional industry and transform to the direction of high efficiency and intelligence,building a bridge between high tech additional agricultural production and growing cities.A company is located in the M District of Heze,Shandong,manage the largest wholesale market for agricultural products in the surrounding areas.On this basis,the company has developed six major industries,such as cold chain logistics,farm batch of supermarket network,agricultural planting base,intelligent storage and distribution,agricultural products and other industries.In recent years,A company rented a batch of greenhouses which the government built for the poverty alleviation,built its own agricultural supermarket,the industrial chain from agricultural production to wholesale-retail is initially set up,the scale of the company has grown rapidly and its operating performance is increasing.However,the company's existing vertical integration strategy is too extensive and lacks the necessary planning to fully exploit the advantages of the entire industry chain.Therefore,it is imperative to improve and formulate a new vertical integration strategy..Based on the theory of strategic management,this thesis obtained a large amount of first-hand information through on-site investigations and interviews on the basis of reading a large amount of literature.On this basis,the company's external environment and internal resources were analyzed using a strategic analysis tool system.The company's capability factors were objectively judged,and a design proposal and safeguard measures were proposed for the vertical integration strategy of A company.The research shows that,in the process of implementing vertical integration strategies,agricultural product wholesalers should choose their own strategies based on their own advantages and external opportunities.On this basis,a number of measures have been adopted to strengthen the implementation of safeguards so as to ultimately ensure the smooth implementation of the strategy.The research of this article is aimed at the development of Company A,which has certain guiding value for the development of the company.At the same time,it is hoped that the conclusions of the study will provide some reference for other companies engaged in similar businesses or those who are committed to entering similar fields in the process of implementing vertical integration strategies.