Research On The Realization Path And Synergistic Effect Of Qingdao Jinwang’s Whole Industry Chain Stratety

In recent years,the cosmetics industry has been growing increasingly in China.Up to 2016,the cosmetics retail market in China has reached more than 200 billion yuan,becoming one of the largest cosmetics markets in the world after the United States.According to the analysis results of zhiyan consultancy,due to the emergence of "appearance level economy" and the change of residents’ income level,consumers’attitudes have begun to change,and the market demand for cosmetics has increased significantly.It is estimated that the size of China’s cosmetics retail market will increase to more than 300 billion yuan by 2023.However,there is still a huge gap between the development status of China’s cosmetics industry and the international market.In order to change the current situation of China’s cosmetics industry,relevant government departments have issued a series of documents and policies to encourage the merger and acquisition and restructuring of the cosmetics industry and guide enterprises to integrate in different degrees.Therefore,China’s cosmetics industry began to change the main direction of the existing business strategy of enterprises,and gradually introduced the whole industrial chain strategy into the development plan of enterprises.Most cosmetic companies are starting to extend the company’s main industrial chain,or control of the industrial chain upstream and downstream enterprises,or impose significant impact on the important link of the industrial chain,there are even some companies holding hairdressing hospital,want to enlarge the business scope of company,has a more complete industry chain,to enhance the strength of the enterprise,make enterprise rapid development.To explore the cosmetics industry development present situation,the enterprise the realization of the whole industry chain strategic path and synergistic effect,this article first in the related literature at home and abroad and the theory on the basis of the conclusion,analyzed with the examples of Qingdao Jin Wang enterprise strategy implementation of the whole industry chain reason,namely lower transaction costs,play a synergistic effect.Then,the realization path of the whole industrial chain strategy is studied respectively from two dimensions of vertical series connection and horizontal integration.Again,this article summary the Qingdao JinWang since 2013 to carry out the strategy of whole industry chain of the annual report data and corporate announcements,the implementation of the strategy of financial index method is used to study influence on enterprise performance,synergies generated by the analysis of enterprise,the enterprise strategy for the implementation of the industry chain of benefits and risks,to want to other cosmetics enterprise strategy from the whole industry chain to provide the corresponding Suggestions and reference.At last,the paper is analyzed and summarized,and the conclusion,prospect and deficiency are summarized.The research results of this paper find that:(1)enterprises implement the whole industrial chain strategy mainly for the purpose of reducing transaction costs and developing synergies.(2)there are three ways to realize the whole industrial chain strategy:vertical series connection,horizontal integration and lateral integration.The main two ways to realize the whole industrial chain strategy of Qingdao JinWang are the former two.(3)the whole industrial chain strategy not only enables enterprises to better control related resources,but also helps them to expand their scale and achieve synergies.Based on the research results,this paper proposes the following Suggestions:(1)the enterprise should choose whether to carry out the whole industrial chain strategy according to its own situation.(2)after the implementation of the whole industrial chain strategy,enterprises should improve the whole system,focusing on whether the various links of the industrial chain play a synergistic role.(3)establish an information sharing platform and unify the information sharing among the industrial chain to achieve information sharing.Whether an enterprise is suitable for the adoption of the whole industrial chain strategy requires comprehensive consideration in many aspects.This paper hopes to provide more specific explanations and references for the use of the whole industrial chain strategy in the practice by case study of Qingdao JinWang combined with theoretical analysis.