A Study On Optimizing Whole Industry Chain Business Model In Biomass Briquette Fuel Of Guangdong D Company

This paper studied the whole industry chain business model of Guangdong DCompany--the biomass briquette fuel producer. This model has been used by many newentrants of the industry and achieved certain results. However, many problems arose in thismodel, such as high production costs, increasing administrative costs and business risk arerevealed, during building the whole industry chain of the briquette. Vertically integratedbusiness model laid the foundation to the rapid development of enterprises in the earlyperiod of the industry. But in the middle period, it can no longer meet the needs ofenterprises’ development, due to changes in external market environment in industry. Tobetter adapt to changes and the whole industry chain business model, enterprisers re-designand optimize their business model based on the original industrial chain to take the strategicupdating and restricting.In this paper, author firstly, illustrated the present situation of domestic and foreignstudies in industrial chain and business model and defined the concepts, discussed theoriesof industrial chain and business model; then, analyzed present situations of industry and DCompany, proposed vertically integrated business model in early-period and analysis theconstraints; and then, analysis the model-effectiveness, the economic value of the industryand calculate the economy critical point of different raw material costs; finally, optimizethe constraints of the model and propose horizontal integrated business model in themid-periodAt the same time, there are3policy suggestions: planning the assessments of availableagricultural frosty waste and plantation of energy crops; establish and improve thecirculation system and related policies of the briquette acquisition; strengthen briquetteapplication technology R&D and industrial system.Main conclusions of the paper are as follow,（1）Defined the concept of whole industry chain of the briquette fuel by takingGuangdong D Company as a case. At the same time, cleanse and enrich the industry chainand business model theory, strengthen the micro-level theoretical research.（2）Propose a new integrated business model which combines vertical integrated model in early-period and horizontal integrated model in mid-period, by analyzing andoptimization of D Company’s briquette whole industry chain model.