Research On The Integration Effect Of TRANSSION’s Global Value Chain

The COVID-19 has seriously impacted the global economy,and a large number of middle and low-end manufacturing enterprises were forced to close down due to the lack of response measures.In response,China has proposed a new development pattern of dual circulation,both domestic and international,to provide direction for enterprises.However,the overcapacity in the mid to low end manufacturing industry is difficult to digest solely by relying on the domestic market,and it is necessary to explore overseas emerging markets with consumption potential.TRANSSION successfully developed the African market through its global value chain integration strategy,and its experience is worthy of research and reference by middle and low-end manufacturing enterprises.This article mainly adopts three research methods: qualitative and quantitative research,case analysis,and comparative analysis.Through a series of theories such as Porter’s value chain theory,transaction cost theory,and smiling curve theory,it analyzes the motivation for TRANSSION to implement global value chain integration,explores the path of its global value chain integration,and summarizes the mechanism of its global value chain integration.Based on the summarized mechanism,this article constructs a financial performance evaluation system for the integration of TRANSSION’s global value chain,and uses financial indicators and analytic hierarchy process to study the effect of TRANSSION’s global value chain integration.From the results,TRANSSION has successfully implemented an effective global value chain integration strategy by optimizing upstream and downstream supply chain processes,upgrading industrial chain links,and expanding enterprise business breadth.It has enhanced its voice and competitiveness globally,expanded its visibility,increased market share,and consolidated its leading edge in the African region.However,after the implementation of this strategy,TRANSSION still has deficiencies in research and development investment,promotion,and cost control.Based on the above conclusions,this article finally draws inspiration for middle and low-end manufacturing enterprises,and proposes corresponding suggestions for the existing problems,providing valuable reference for these enterprises in implementing global value chain integration strategies in the future.