| Traditional energy power generation has occupied the main position in the global power market for many years because of its advantages such as low cost and easy access.With the increasing attention of countries around the world to environmental protection,clean energy power generation represented by photovoltaic has developed rapidly in recent years.Longji Co.,Ltd.was established in 2000.In the early stage of its establishment,the company focused on the R & D,manufacturing and sales of monocrystalline silicon chips,and became the world’s first in the field of single crystal manufacturing in 2015.In 2014,Longji started the process of vertical integration through mergers and acquisitions,new construction and strategic cooperation,and its business scope began to extend downstream of the photovoltaic industry chain.In order to analyze the impact of Longji’s vertical integration strategy on the company’s performance and put forward targeted suggestions,this paper analyzes the strategic environment of Longji by using PEST,Porter’s five forces model and SWOT model,and further expounds the motivation of the company’s implementation of vertical integration.Then,using the event research method,this paper analyzes the market reaction of three representative events in the process of implementing the vertical integration strategy: the new Xi’an Longji subsidiary,the merger and acquisition of Zhejiang Leye component company and the conclusion of a strategic cooperation agreement with Huawei.When studying the performance of Longji shares,starting from four capabilities of the enterprise,this paper analyzes the changes of the company’s operation ability,solvency,profitability and development ability from 2013 to 2020 by using indicators such as asset turnover rate and R & D expense rate,and compares them with the average value of the same industry.The results show that during the event period,the market generally held a negative attitude towards the implementation of the vertical integration strategy of Longji shares,and the company did not reap excess returns.In the long run,since the company implemented the vertical integration strategy in 2014,overall performance of the company has improved significantly,mostly higher than the industry average,indicating that the implementation of the vertical integration strategy has played an important role in improving the performance of Longji shares.This paper also analyzes the adverse factors affecting Longji’s implementation of vertical integration strategy,and finds that Longji may be affected by overcapacity,heavy debt burden,fierce market competition and so on.In the future,the impact of these adverse factors on operating performance can be reduced by reducing costs,controlling the scale of bond issuance and increasing investment in R & D. |
