Research On The Effect Of Vertical Integration Of Shuanghui Industrial Chain

With the more and more detailed division of labor in China,the competition between single products or single market segments is becoming weaker and weaker,so many enterprises begin to turn to vertical integration of industrial chain.So what are the reasons for enterprises to carry out vertical integration of the industrial chain,and what is the effect of its implementation? In view of these two problems,this paper analyzes the motivation and effect of implementing vertical integration of industrial chain in Shuanghui based on the theories of industrial organization,transaction cost and enterprise capability.Firstly,this paper classifies the motivation and effect of vertical integration of industrial chain by literature research,which lays a solid theoretical foundation.Secondly,combined with the characteristics of the meat industry chain,this paper uses case study method to analyze the motivation and effect of the vertical integration of the industry chain in Shuanghui.In the motivation analysis,vas value-added method will be used to evaluate the vertical integration degree of the industrial chain of Shuanghui from 2010 to 2018,so as to confirm the implementation node of the vertical integration of the industrial chain.Then,the comparative analysis method is used to analyze the effect of vertical integration of industrial chain in Shuanghui from the financial and non-financial perspectives.From the financial perspective,we will first analyze the asset structure of Shuanghui in recent years,and then use the comprehensive financial performance scoring method to compare the financial situation of Shuanghui and Longda.From the perspective of non-financial,we will select the data from three aspects: competition,industry status and market share to analyze the effect of vertical integration of industrial chain in Shuanghui.At last,the paper concludes the whole paper and draws the conclusion and deficiency.Through the research,it is found that Shuanghui,as the core enterprise in the meat industry,marches into the upstream industry through the vertical integration of the industrial chain,increases the control of the industrial chain,makes it obtain a stable raw material supply channel,controls the source quality,obtains the recognition of consumers,and then improves the industry position and market share.