Research On Technical Cost Strategy Of Wanxiang Group Based On Value Chain Upgrade

Technical cost input is a fulcrum for enterprises to realize value chain upgrade. Developing suitable technical cost strategy will guide enterprises to input technical cost properly and to realize value chain upgrade. At present, China's auto industry has been a pillar industry of the national economy, there are bright prospects lying ahead on China's auto industry. Auto parts manufacturing companies are the key parts in China's auto industry. In order to develop, these companies must not only focus on the low-end manufacturing link which lies at the bottom of the smiling curve of value chain, they should increase products' additional value, expand their markets, and realize the upgrade of their value chain. While in order to realize the value chain upgrade, auto parts manufacturing companies must develop proper technical cost strategy, input technical cost properly, improve the ability of sustainable development.Based on the relevant knowledge about technical cost and value chain upgrade, this thesis subdivides Wanxiang's technical cost, introduces Wanxiang's value chain upgrade briefly, and analyzes the relevance between technical cost strategy and value chain upgrade. Then, analyzes the relevant technical cost inputs situation on technological process upgrade and function upgrade, conclude the relevant technical cost strategy. Then this thesis concludes Wanxiang's intensional value chain upgrade path based on the promotion of products' add value, and Wanxiang's mechanism that technical cost strategy promote intensional value chain upgrade, offers some suggestions for parts manufacturing firms.At present, research results on technical cost strategy are fewer. This thesis attempts to study the technical cost strategy based on value chain upgrade, enriches the research results on technical cost strategy and value chain upgrade, reveals Wanxiang's mechanism that technical cost strategy promote intensional value chain upgrade, which would offer some tips to other China auto parts manufacturing companies on how to choose the right technical cost strategy and realize the value chain upgrade.