Multi Case Study On Vertical Integartion Strategy Of Power Battery Enterprises

Currently,energy conservation and emission reduction have become the consensus of sustainable development in various countries around the world.Promoting the development of new energy vehicles is an important strategic measure for countries to address climate change and promote green development.As a result,China has formulated guidelines for the "dual carbon" goal,and people continue to pursue carbon emission reduction.The new energy industry has emerged,and new energy vehicles have opened a new chapter.The core of new energy vehicles is their power batteries.With the rapid development of new energy vehicles,power battery companies have greater growth space and will face certain opportunities and challenges.However,there are relatively few documents on strategic research,especially vertical integration strategic research,for power battery companies.The development of power battery companies requires certain theoretical guidance.This article selects three power battery companies,BYD,Gotion High-Tech,and CATL,as the case study objects.From the perspective of the power battery industry,it uses the Porter Five Forces Model,value chain analysis,and Boston Matrix analysis methods to conduct a multi case analysis of them.Firstly,a backward integration strategy analysis was conducted for BYD,and it was found that its motivation was to meet the enterprise’s expansion speed,obtain stable raw material supply,and control the cost of raw materials.Ultimately,BYD achieved economic benefits in terms of cost and revenue,as well as market benefits with a second market position;Secondly,a forward integration strategic analysis of Gotion High-Tech was conducted,and it was found that the motivation was to improve the adaptability of the product market,obtain guaranteed order sales,and save costs.Finally,Gotion High-Tech achieved economic benefits in terms of revenue and cost,as well as market benefits in the top five market positions;Then,a forward and backward integration strategic analysis was conducted for CATL,and it was found that the motivation was to enhance market position,create an ecological pattern of the industrial chain,expand and stabilize order sales,and master scarce raw material resources.Finally,CATL achieved economic benefits in terms of revenue and cost,as well as market benefits that ranked first in the market position;Finally,a comparative analysis of the similarities and differences in the vertical integration strategy of three case companies is conducted,and the success and shortcomings of the implementation of the vertical integration strategy of power battery companies are obtained.Through a comparative analysis of the implementation of vertical integration strategies in three power battery enterprises,BYD,Gotion High-Tech,and CATL,this article discusses that the implementation of vertical integration strategies with different motivations,strategic directions,and implementation methods will bring economic and market benefits to the enterprise,but there are differences in the economic and market benefits obtained,indicating the feasibility of implementing vertical integration strategies in power battery enterprises.On this basis,relevant suggestions are given from the government and enterprise levels,providing a reference for strategic choices for various power battery companies currently facing opportunities and challenges.