Abstract

Info

Title:: Analysis of vegetable industry based on value chain and “five forces” model

Author(s):: ZHANG Jing; XUE Mei-yun; ZHENG Yan; School of Automobile, Chang‘an University

Keywords:: cheap vegetables hurting the farmers; expensive vegetables hurting the people; producers; consumers; logistics providers; value chain; “five forces” industry analysis model

Abstract:: As the vegetable industry developing extremely unstably in recent years, the problem of “cheap vegetables hurting the farmers” and “expensive vegetables hurting the people” often occur at the same time. Viewed from the value chain point, this article, regarding industrial market as a whole, analyzes the phenomenon of “cheap vegetables hurting the farmers” and “expensive vegetables hurting the people” by using Michael Porters “five forces” industry analysis model. It discovers that the reason for such a phenomenon, on the one hand, is that the opportunity cost of growing vegetables is high, or the opportunity cost increases sharply, or even it is the result of these two combination; on the other hand, it also related to the sector for circulation process is complex. On the account of this, the article provides the relevant advice for improvement: to control cost drivers factors and reconstitute value chain.