| Summary: | 碩士 === 東海大學 === 食品科學系 === 84 === This research bases on theory of industry organization and
economics and utilizes statistical methods such as -square test
and factor analysis to develop a methodology to evaluate the
welfare loss within the frozen prepared food industry through
the OEM (original equipment manufacturing) behavior, and to
discuss the major factors which affecting the OEM decision. The
major findings are summarized as follows: 1. the existence of
OEM behavior does increase the concentration ratio in frozen
prepared food industry, especially when the market are broken
down into specific item. This can be interpreted to be the
realization of product specialization and product-specific
economy of scale. However, in the present stage of this
industry, the conduct(OEM) could not only meet the demand of
small volume and various varieties from the consumer, but also
achieve economy of scale and economy of scope through multi-
plants operation. As a result, we can conclude that the behavior
of Taiwanese frozen prepared food industry is consistent with
the industrial economics theory. Facing the problem of over
capacity of production within the industry, manufacturer can try
to expand domestic consumption, the market for organization
buyers, as well as the export market. The first five important
factors affecting manufacturer''s decision to ask for other
manufacturer to do OEM for them are: firstly, to expand business
area; secondly, to meet diversified demand of consumer; thirdly,
to meet the requirement of marketing channels; fourthly, to test
the market and finally, to produce more flexibly. all of this
indicates that manufacturers are more concerned with the market
strategy than cost reducing. On the other hand, the major
reason for manufacturers to accept the orders to do OEM for
other company is to consume their over capacity in production
and not for the improvement of the level of technology . The -
square test shows that higher the company''s capital and
promotion budget; and the fewer number of employers , the higher
tendency for the company to ask other manufacturer to do OEM for
them. It also shows that the higher the capital and promotion
budget, the higher tendency for manufacturer to do OEM for the
major marketing channels. As for the manufacturer''s market
strategy for future, the first five of the most important items
are: improving quality of products, developing new products,
emphasizing R&D, improving packaging and segmenting the market.
This indicates that manufacturers pay more attention on the
products and try to avoid the price competition by product
differentiation and market segmentation. 2. Although the market
for individual product does tend to be more concentrate when we
take into account for the OEM behavior in the industry, the
concentration ratio for frozen prepared food as a whole does not
change significantly after the consideration of OEM behavior, as
a result, we can conclude that the welfare loss due to OEM
behavior is not large. However, to analyze welfare loss of the
frozen prepared food industry, it shows that the allocation
inefficiency is about 1.24% of total production value, the
valudet is consistent with previous research in other country in
different industry, and if we add in the expenses of advertising
and promotion, the X-inefficiency value add up to be 6.8%.
Furthermore, if we take into account for the X-inefficiency due
to overcapacity of industry and managerial diseconomy as well as
the income transfer, the value is 18.97% of total production
value. The conclusion we can draw from this is the welfare loss
from frozen prepared food is mainly resulting from the X-
inefficiency and income transfer. 3. Although the OEM behavior
in industry can reduce the X-inefficiency resulting from over
capacity of production in the short run, it will increase the
income transfer from the consumer to producer in the long run.
therefore, the OEM behavior between manufacturers is not
encouraged. On the other hand, the development of private label
(marketing channel''s brand) product can reduce the consumer''s
welfare loss, and to a certain degree, also compete with the
major large manufacturer''s existing market power. However, it
should also be noticed that strong power of the marketing
channel might in return distort the producer'' s market structure
resulting an undesired market structure.
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