Analysis On The Whole Industrial Chain Strategy And Enterprise Value Of New Energy Vehicle Enterprises

In 2012,since the State Council issued the "Energy Conservation and New Energy Vehicle Industry Development Plan(2012-2020)",the new energy vehicle subsidy incentive policy has been fully rolled out.Under this background,China's new energy automobile enterprises are developing rapidly and the market scale is expanding.New energy auto companies have also mushroomed and occupied the market.The international large-scale automobile brands Volkswagen,Audi,BMW,Mercedes-Benz and so on have also continuously introduced new energy vehicles.After the booming development of subsidies,the competition in the industry is bound to intensify.The development strategy of new energy auto companies in this background is worthy of further study.In recent years,the vertical splitting phenomenon between many industries has become increasingly active,such as automobiles,communications,electronics,etc,and many companies have abandoned the vertical integration strategy.Taking the automotive industry as an example,in the 1930 s,Ford's vertical integration model was a great success,and this model has become a model for global industrial production to follow suit for a long time.However,in the 1990 s,more and more non-core links will be separated and companies will focus more on the core business.Enterprises choose different development strategies,which will use different governance models,different market response plans,different risk response capabilities,and face the change of the vertical integration strategy of the traditional automobile industry.,Enterprises which are developing new energy vehicles on this model such as BYD are facing many challenges.long-term development of enterprises depend the strategy,M & A activity should both meet the short-term development needs and the long-term strategic guidance.For enterprises,how should we choose a governance model suitable for the vertical industrial chain relationship,to coordinate the vertical relationship of the industry chain,realize the value of products or services,and enhance the market's market risk response capability;how to cope with the major international automobile companies to fully join the new The energy car business was previously in competition.To ensure that competition in the future market will intensify and domestic subsidies will be declining,BYD,which still chooses the whole industry chain strategy,can still grow and develop.This is the question that this paper needs to answer,and it is also the logical starting point of this paper.Taking BYD as an example,this paper studies the vertical integration development strategy of new energy vehicle business,analyzes the impact of its strategy on enterprise value,and aims to study whether the strategy,in the long run,can continue to raise the value of enterprise largestly.At present,China is vigorously subsidizing the new energy industry.New energy enterprises are developing rapidly.In the future,competition will intensify and subsidies will shrink.At that time,whether the vertical integration strategy can give play to its advantages is the focus of this paper.I hope this article can provide a reference for the development of new energy auto companies that adopt a vertical integration strategy.