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Based on the research of the industry value chain T with suppliers win-win mechanism

Author: XiaoRongWei
Tutor: DuYiFei
School: University of Electronic Science and Technology
Course: Business Administration
Keywords: industrial value chain mining the value of material flow discovering the value of information flow framework of value share win-win system
CLC: F224.32
Type: Master's thesis
Year: 2011
Downloads: 15
Quote: 0
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Abstract


This paper introduces the way of Company T, based on the theory of Industrial Value Chain, to establish win-win system with suppliers.Win-win System, on the aspect of Word Explanation, could be understood that Cooperation and Success interacts each other, generating increment on the premise of cooperation, improving relationship on the basis of increment. And the system in such a way is the support of the increment and cooperation, enabling them to be of extension. These opinions can be theoretically supported by Theory of Industrial Value Chain and Theory of Game.From the macroscopic point of view, the source of competition advantage through enterprises is not only from the advantage of itself, but from advantage of the whole industrial value chain. It is also the competition between“chains”. From the micro level, it exists profit gaming among enterprise and its up and down-trend firms. Total- self benefit will enable down-trend firms control price and change lead time, with the result of damaging benefit of up-trend firms. Such short-term“benefit”will sacrifice the creation of up-trend firms, which impacts the response ability of corresponding firms, and finally sacrifice the capacity of profitability of down-trend firms. This is a relation of mutual action.This article also analyses the macro environment externally and micro environment internally of Company T within the industrial value chain, and competition situation of other industrial chain as well, then points out the complex and complicated difficulties that Company T encountered. Under the atmosphere of globalization, an enterprise hardly accomplishes the overall functions of a value chain. Most of them realize part of the function which exerts the advantage within it. No single enterprise can expect to be immune from the unpredictable internal and external environments, only finding way of resources integration and utilization, to carry out sustainable development. If only consider the case as it stands, it is unable to find source of the problem.By mining the value of material flow and discovering the value of information flow, this article is to enhance the competition ability of Company T; and together with the framework of value share, to generate cooperation game and improve its relationship with suppliers, so as to develop sustainably based on value creation of material and information flow. It is also from the vision of industrial value chain to solve the problems of Company T by establishing the win-win system between Company T and its suppliers.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods > Operations Research in the economy > Game Theory
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