| Summary: | 碩士 === 國立臺灣科技大學 === 管理研究所 === 98 === In recent years, the interaction between China and Taiwan is more and more dynamic, and it is expected that Taiwan will sign ECFA with China in year 2010. China has been the biggest export surplus country to Taiwan so far, and its total trade amount is over USA. After 2008 financial crisis, China changes to a powerful domestic demand market, which makes its markets relatively important to the world. Taiwan, nearby China, should pay further attention, realize and evaluate any possibility of investing China.
With the rapid economic growth in China, people have better incomes and create more savings, and therefore, their spending powers are stronger and stronger.
Amount of all expenses, living expense develops fast. Due to above reasons and my employment in a wholesale company, I select the topic of the evaluation of Taiwanese wholesale industry investing in China as my dissertation. Wholesale in Taiwan faces bottlenecks: hard to develop new stores and high competition; by contrast, Chinese wholesale in industry is booming, and disembarking China is a trend now.
This research is made of objective and explorative methods by collecting, comparing and analyzing materials from Taiwan and China; all results will be provided as entry modes and market evaluation and etc. The research findings are as following:
1. Collect specialties and trends of Taiwanese and Chinese wholesale industries.
i) The openness of governmental policy
Both sides across Straits implemented trade protection policy in retail business and other service industry.
ii) Specialties of industry and market structure
Competitive advantages of international retail groups are abundant financial support, management team and techniques; consequently, foreign businesses have great influence in the wholesale market of both two sides across Straits. The wholesale market in Taiwan is close to be saturation; sales turnovers of the first four businesses occupy 88.7% amount of all retail industry. Integration level in China is comparatively lower, the first four retail chain store businesses only occupy 34.39% amount of all. It represents that there is room to develop the market.
2. Inducing six foreign wholesale business entry models and other influences
This research analyzes six entry models (export, authorization, alliance, whole technique export, join-venture and venture exclusively). Three variables of Eclectic Theory structure (environmental variable, global strategic variable, specified transaction variable); nine influential variables (national risk, local difference, unstable demand, competitive density, global exclusively know-how value, concealment of know-how) for analyzing the identity of business and datum for adopting a proper entry model to invest the target.
3. Market evaluating flow for analyzing Taiwanese businesses investing Chinese wholesale market
It includes: site survey, macroscopic analysis, detail site evaluation, microcosmic analysis, market evaluation, population analysis of the business communities, factors of store selection, transportation and plan analysis, competition analysis; five-forces analysis, core-competence analysis, core-capability and strategic target.
4. A method for providing Taiwanese businesses to evaluate their costs and benefits in investing in Chinese market
i) ROI: supposed that the ROI of the business is greater than its competitors’ average. Then, it is worth investing this business.
ii) NPV: supposed that NPV is positive, it presents that this investment is over expectation; negative shows below expectation.
5. Model creativity
It pursues the advantage of difference, which can build up Niche. Take RT-Mart for example: 1. Market positioning by setting up the lowest sales price which is different from Carrefour and Wal-Mart. 2. Relations amongst all suppliers: keep harmonious, equal relation, and not delaying payments. 3. Working together with employees: ESOP (employee stock ownership plan), designing “grass root survey” structure. (Details will be shown in the text)
6. Selection entry model
Selecting proper model to entering overseas market should be based on owned resources, conditions and capabilities, such as that small- and medium size enterprises are better for export, authorization or alliance; large enterprises or business with abundant financial resources can be through whole technique export or joint venture. Large enterprises have the above mentioned the advantage of ownership. Those have (O) the advantage of integration, (I) the advantage of localization, (L)capability will choose ventures exclusively.
7. Precise market evaluation
Any enterprise investing overseas market should well implement target market survey and evaluation from the selection of locations, the realization of governmental policies, the analysis of market communities, and future development of the target market. It also should be according to owned competence and resources to analyze current and future competitors.
8. Effective cost control and analysis
An enterprise which can be sustainably managed should not only have high market sense, but well use evaluation techniques. This research provides a case study of X Company investing in Jinan in China, which makes use of the techniques of ROI and NPV as costs and benefits analyses. Based on them, the investor can determine and evaluate the possibility of the project. It is suggested that investor can also utilize EBIT and EBITD techniques to do further financial analyses for more precise evalutation.
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