Integration Strategy and Competitive Advantage: Model Constructing and Case Study

Reviewed relevant theories, we proposed an enterprise integration strategy and competitive advantage model. In the context of globalization and transition economy, some industries are characterized by industrial growth stage, so enterprises can implement horizontal and vertical integration strategies to achieve economies of scale and economies of scope, lower transaction costs, and on the basic of the above, enterprises must have a strong resource integration ability, then integrate enterprise resources by using country-specific advantages as to form firm-specific advantages, then it can build competitive advantage. In this paper, we took Baosteel for example, discussed the path of its competitive advantage formation.