Research On The Impact Of Vertical Integration Strategy Of Photovoltaic Enterprises On Sustainable Operation Capability

With the continuous deterioration of the climate and environment,compared with the high environmental pollution of traditional energy,renewable energy,which is green and low-carbon,has been supported by the world.With the support of the "carbon neutral" goal and the energy policies,solar energy has been supported by its many advantages such as cleanness and sustainability,and the photovoltaic industry has emerged and achieved rapid growth.Since 2013,driven by industrial policies and technological innovation,China has became the world’s largest solar photovoltaic application market,and the photovoltaic industry has become China’s international competitive advantage.With the continuous expansion of production scale and the acceleration of technological iteration,the competition among photovoltaic enterprises in China is intensifying.In 2018,the National Development and Reform Commission,the Ministry of Finance and the National Energy Administration jointly issued the Notice on Matters Related to Photovoltaic Power Generation,which implied the coming of affordable access to photovoltaic power.In order to cope with the increasingly fierce competition and the continuous reduction of the cost of photovoltaic power generation,some photovoltaic enterprises in China began to implement the vertical integration strategy to improve their sustainable operation ability.The vertical integration strategy is the strategic behavior of an enterprise who extends along the industrial chain of its own business.And the sustainable operation ability includes not only the ability to survive,but also the sustainable competitive advantage to develop for a long time,which is an important manifestation of the comprehensive strength of the enterprise.The vertical integration strategy can help PV enterprises improve their market power,reduce product costs,play a synergy role,promote technological innovation,etc.to form a sustainable competitive advantage,and improve the sustainable operation ability of PV enterprises,but it also puts forward higher requirements for the comprehensive strength and anti-risk ability of enterprises.In order to study the impact of the vertical integration strategy of the photovoltaic industry on its sustainable operation capability,this paper selects LONGi,which has implemented the vertical integration strategy earlier in the industry and has formed a strong sustainable competitive advantage,as the research object.First of all,by combing the relevant literature and theoretical basis,determine the concept of vertical integration and sustainable operation capability,and sort out the motivation,influencing factors,evaluation system and mechanism of the impact of vertical integration on sustainable operation capability.Secondly,through the analysis of the current situation of the development of the PV industry chain,the implementation of the vertical integration strategy of the PV industry is measured,and the evaluation system of the sustainable operation capability of the PV industry is constructed and measured according to the above analysis.Then,it analyzes the implementation of LONGi’s vertical integration strategy and its impact on the sustainable operation ability: by combing the implementation process of LONGi’s vertical integration strategy and the changes of its indicators of sustainable operation ability before and after the implementation of the strategy,it analyzes the mechanism of the implementation of the vertical integration strategy on the indicators of sustainable operation ability.Finally,according to the above analysis and research conclusions,the paper puts forward corresponding suggestions for the implementation of vertical integration strategy of PV industry enterprises.The research conclusions are as followings:(1)With the implementation of the vertical integration strategy,LONGi’s sustainable operation capability has changed:it has received a larger scale of government subsidies,but the intensity has not changed much;The brand advantage has been established and the market share has been increased through the early brand investment;Profitability and innovation capacity have been enhanced,solvency has been weakened,and operating capacity has not been greatly improved.(2)The impact of vertical integration strategy on the sustainable operation ability of LONGi is mainly reflected in the improvement of profitability,market power and innovation ability,and the failure to improve the operation ability,making it not have advantages in the industry.