The Research On Value Chain Integration Of Multinational Company And China Enterprises’ Strategy

Multinational company plays an irreplaceable role in the economic globalization. It has become an important driving force to the economic development. Along with the accelerating of the globalization, multinational companies are taking new management strategies to deal with fierce competition in international market. They want to make new integration of resources to get more optimized configuration through global value chain. Multinational companies in developed countries occupied the commanding heights in global value chain through new integration. At the same time, based on their own needs, enterprises in developing countries also participated in the global competition. In this competitive process, enterprises in developing countries often be embedded in the low end of the global value chain by multinational companies in developed countries. As the largest developing country, if China want to get rid of the low end of the value chain, not only the of the government but also the enterprises have to take some efforts to improve China enterprises’statue on the value chain.In this article, we made the value chain analysis a framework to study the integration of multinational company’s value chain. The value chain framework is a very effective analysis tool. It can give us a very good understanding of how those enterprises are participating in global economic activities. In recent years, multinational companies mainly make influence on other countries through the integration of the value chain.So, in this article, we first made a corresponding research on the integration method of multinational companies value chain, mainly analysis the technology impacts which cross-border mergers acquisitions, strategic alliances and service outsourcing have made on both homeland companies and enterprises in host countries. Then expounded the present situation and the cause of why China enterprise is locked in the low end of the value chain. China enterprise locked in the low end of the value chain not only because Chinese enterprises lack of innovation ability, but also Multinational companies blockade to the Chinese enterprise technology innovation. Finally, the article puts forward that to break through the low-end trouble, China enterprises and the government also have to make efforts. On the enterprises’hand, promote the enterprise innovation ability, expand the market forces range, after that, construct their own value chain. On the government’ hand, to provide corresponding policy support to enterprises, to strengthen the protection of enterprises, and support the upgrading of the industrial enterprises. The innovation of this paper lies in that it combines the value chain and multinational companies’integrating together, it helps us to analysis the influence of the dynamic relationship between enterprises. What’s more, considering the Chinese situations, this article thinks that China enterprises cannot pursue low-end breakthrough in value chain blindly. Instead, we should based on the existing competitive advantage, explore the new, most-cored competitiveness, make the realization of value chain breakthrough step by step.