Abstract: In this paper, weanalyzed the benefits distribution in the global supply chain based on the VerticalMarket Theory. The research shows that the benefits distribution will begreatly determined by the prices of intermediate products while the prices ofintermediate products are mainly affected by the structure market and the costof enterprises. The basic reason of the structure and production cost variancelies in asset specificity，scale economy，scope economy and so on. Theautomobile industries have a high character of value chain specialization forthe high contact with other industries. The benefits that we get are muchlower. For the continent enterprises, they shall reduce costs through scaleeconomy and scope economy and standardize parts. They shall enhance correlationwith the upstream companies and finally obtain more benefits in the networkproduction.
Keywords:Automotive Industry,Benefits Distribution, Global Supply Chain, Value Chain Specialization
1. Introduction
Globalsupply chain is a new model of organization and management which is proposed bythe2. Literature Review
Mostscholars study the benefits distribution of enterprise through contracts. Theydo the research on how to coordinate the benefits of upstream and downstreamenterprises. Gerchak and Wang（2003）studied the problem that the product assembly companyadopted a number of revenue sharing contracts to incentive component suppliersto determine the production quantities. They finally arrived at a balanced benefitsdistribution of revenue sharing and production quantity. Satyaveer S Chauhanand Jean Marie Proth（2005）pointed out that the principles of the benefits distributionof supply chain include: mutual benefit principle, risk compensation principle,the principle of more pay for more work, the principle of democraticdecision-making and scientific distribution principle.