The Impact Mechanism And Path Of Value Chain Upgrade On Corporate Strategic Performance

With the rapid development of the economy of China,more and more inland and overseas scholars have paid attention to how to break through the "low-end locking" and resource-environment dilemma and improve the performance of enterprises through manufacturing value chain upgrading.Most of the previous studies focused on the empirical analysis of the industry and verifying whether the upgrade of the value chain has a significant impact on enterprise performance from different angles.However,the mechanism and pathway of the effect of the value chain upgrade process on enterprise performance are still not clear which leaves a great opportunity for the study presented in this thesis.In this thesis,the main topic was focused on what types of upgrade methods that the Midea Group adopted in their value chain upgrading process,and how these different upgrading methods affected the strategy performance.To investigate the issue,the thesis adopted the vertical case analysis approach.The results showed: first,in the initial stage of development,the enterprise chooses the vertical right-end upgrade mode in the value chain and extends to the downstream value chain.Through the expansion of production scale,establishment of sales channels and after-sales service system,and brand building,the competition force and service ability are continuously improved.Thereby,the company revenue,market share and brand value are improved as well as the enterprise performance.Second,with the development of the enterprise,the enterprise will choose the vertical left-end upgrade mode in the value chain,and upgrade to the upstream design and development links.Improve the technological innovation capability through the establishment of independent research and development system and cultivate employee plans,as well as the satisfaction of customers and employees.In this way,the competitiveness of the products is enhanced,and the service upgrades of customers and employees are carried out,which in turn affects the performance of the company.Last,when an enterprise upgrades to the top of the value chain in the original industry,it will choose to embed a value chain with higher added value to gain new profit growth points and diversified development capabilities.In the early stage of embedding,the company will develop new industries by expanding production capacity and customer groups,investing in research and development of new products and core technologies,and exerting synergies between new and old industries,and maintaining the competitiveness of the original industries,thereby affecting corporate performance.In summary,this thesis clearly drew out a mechanism and pathway where the enterprises adopt different value chain upgrade methods according to different development stages to influence the strategy performance of the enterprise and constructed a roadmap of the impact of value chain upgrade on strategy performance.