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The Gap Between Chinese Business Model and the International Advanced Business Model

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1404837 曾延

The Gap between Chinese Business Model and the International Advanced Business Model ----Chinese cannot be the employee of the world

China has been regarded as ‘World Factory’ for a long period until now. This appellation was considered as an honor by a vast majority of Chinese people in the past decades. Nevertheless, it was recognized that China cannot be the world factory because the labor cost and the manufacturing costs are increasing. This change reduced the profits of manufacturing industry, which means that the business environment for our manufacturing has been becoming more deteriorative. From government’s perspective, China need industrial transformation and upgrade industries. On enterprises’ viewpoint, the significant method for this situation is innovate the business model. This essay will demonstrate the gap between Chinese business model and the international advanced business model.

The control power to industry chain determined the merchant mode. In modern business, controlling the upstream section of the industry chain means that the enterprises make profits and economize the resource and cost furthest. For instance, China only control the one part of industry chain. That is manufacture which is a low-income and high cost part. However, the upstream section of the industry chain was controlled by American companies. The most famous example may be the Apple Inc. that never produce even one element of electronic products. Apple Inc. masters the design and research section which is high yield and the crux of the whole chain. Then, Apple utilize this superiority to attract other manufacturer such as Foxconn. Apple will lower the price per unit to make more profits, which depress the Foxconn to only survive. Foxconn have to overburden workers to work for almost 12 hours per day. As a result, 11...

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