Research On The Performance Of Whole Industry Chain Strategy Of New Automobile Industry

In today’s world of increasing globalisation,competition between companies is becoming more and more intense.At this time,competition between companies is no longer only about their core business,but also about their industry chains,which are becoming an important factor in their competitiveness.As a result,more and more senior management of companies are beginning to pay attention to the advantages of a whole industry chain strategy and seek more possibilities for corporate development.Focusing on the new energy vehicle industry,it is in a state where the number of enterprises is large,the scale of enterprises is small and the concentration of enterprises is not high.The Ministry of Industry and Information Technology also advocates merging and restructuring companies to make them bigger and stronger,so the integration of enterprises in the whole industry chain will be a trend in the new energy vehicle industry.BYD is the leading enterprise in the new energy vehicle industry and also has a complete layout of the full industry chain,therefore i pick BYD as the case study enterprise.Based on the concept of the whole industry chain,the whole industry chain of automobiles and theories such as industrial organisation theory,enterprise growth theory and transaction cost theory,this paper firstly briefly introduces the case company and analyses the background of its whole industry chain strategy,i.e.the characteristics of the new energy automotive industry chain,and explores its motives for implementing the whole industry chain strategy with the characteristics of the new energy automotive industry chain.The paper then reviews development of its full industry chain strategy,Secondly,this paper analyses the performance of BYD’s implementation of the whole-industry chain strategy in three aspects.After conducting a series of analyses,we can identify the advantages and disadvantages of BYD’s implementation of the all-industry chain strategy.The specific advantages include better cost control,greater market share and increased innovation capability,while the disadvantages include the risk of strategic misjudgement,the need for higher asset integration capabilities and the increased risk of cyclical fluctuations in the industry chain.Finally,this paper suggests that enterprises in the new energy vehicle industry chain that wish to try to implement a full industry chain strategy should pay attention to improving the implementation of the full industry chain strategy and the ability to integrate assets after implementation,as well as pay attention to the dynamic changes in the industry in a timely manner。...