Study On Brand-oriented Firms And Their Integration Modes Of Value Chain

Being the world's second largest economic body, China has few well-known global brands. Going from a big manufacturing nation to powerful nation with many famous self-leading brands, is a way to achieve industrial upgrading. In the thirty years of reform and opening-up towards the outside world, Chinese enterprises have inserted but stay at the low part of the industrial value chain. We should improve the contribution rates of techniques and brands so as to gain more profit. As a new developing country, labor intensive industry is the main part of national economy. These traditional industrial chains are buyer-driven and can be effectively promoted by the contribution rate of brands.As an important intangible asset, brand equity embodies the innovation, management, quality and culture advantage of companies. In the dynamic operation environment, market orientation is rooted in the hearts of the people progressively. Brand equity can maintain customer relationship powerfully in a long period, and improve the profitability of the company through brand premium and sales volume growth.This paper focuses brand oriented companies and their value chain integration through carrying out the theoretical and applied research based on the above background. Brand-oriented companies think the brand as the core part of company strategy, and actively use the brand to drive business decisions and manage the companies. All efforts and resources are directed toward the fulfillment of this brand vision. This paper aims to reveal the united management mode and operation mechanism of brand value and company value using value chain as the main analysis tool.Based on the profound analysis of brands'strategic value, this paper first launches on a discussion about the connotation and the evolution process of brand-oriented companies. This paper maintains that the essence of brand orientation is a kind of competitive strategy orientation. As a special market orientation, brand orientation can guide companies to gain the ability to influence the market through building customer's relational assets which can connect internal resource with external market. Then, this paper makes a thorough study of action mechanism of brand strategy orientation and brand core value orientation applying the brand-oriented value chain model. Brand strategy orientation makes the claim that companies should construct the transaction and organization mode to fit the establishment and application of brand equity, then implement brand strategy through effective value chain. Brand core value orientation claims that companies should allocate resources by the value signal acted by brand core value to guarantee the consistency between the created value and brand opinion. Secondly, this paper emphatically analyzes the integration patterns of value chain of brand-oriented companies. It is maintained that efficient brand-oriented value chain integration modes must keep to the value strategy and take brand as the tie of customer relationship, and companies should carry out integration management in strategy lay, culture lay and operation lay to obtain synergistic effect. Further, brand-oriented value chain model is used to analyze internal integration mode, vertical integration mode and horizontal integration mode of brand-oriented value chain and integration content, integration character and integration motivation are summarized. To deepen the study on integration modes of brand-oriented value chain, this paper constructs principal-agent models and makes quantization analysis of the value chain integration between brand-oriented firms in different positions of links in value chain and their outsourcing service providers. The results show that brand premium capacity and the impact degree of brand on demand have active effects on cooperation mechanism.Finally, the paper constructs structural equation model and uses survey data of manufactories in east china to verify the active influence of brand orientation and value chain integration on brand equity and firm performance, revealing the source of brand-oriented companies'high value increment.