A Study of Horizontal Share-Holding Strategy and Vertical Share-Holding Strategy–(Leader-Follower Model)

• Main Authors: FAN,LI-HAO, 樊力豪
• Other Authors: 謝登隆
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/24311799870777292931

碩士 === 東海大學 === 國際貿易學系 === 99 === The times vary from minute to minute, all firms want to maintain or increase their competitive advantage. How to break the current competitive situation with the opponents and use strategies to make corporate management more stable and profitability is a very important issue. In order to break the current situation with the competitors, strategic alliances are the most readily available, fast way to business growth. According to relationship between firms in the industry strategic alliances are divided into: horizontal alliance and the vertical alliance. So far, there are many literature dedicated to discussed about the strategic alliances , but most of the literature are based on quantitative methods to elaborate its results or separately discussed a particular strategy of the impact by the enterprise but few literature used Mathematical Model to discuss the comparison of two strategies. Otherwise there are share holding form (part of the shares held) in the strategic alliance that little literature discussed in the past. Therefore, this paper introduced the concept of share-holding which was adding to vertical and horizontal strategy, and then it constructs economic model. In the upstream and downstream firms are all duopoly markets structure, we used the first downstream firm for the main strategy starting point, then discussed the comparison between horizontal share-holding and vertical share-holding strategy. Moreover, we will know what kind of strategy that can bring much more competitive and profitable for enterprises. Finally, the findings of this paper are： 1. The firm in the downstream taking vertical share-holding strategy will gain a great profit than the one taking horizontal share-holding strategy. 2. While proportion of share-holding increasing, the positive difference of profit between vertical share-holding strategy and horizontal share-holding strategy will be greater. 3. While market demand increasing, the positive difference of profit between vertical share-holding strategy and horizontal share-holding strategy will be greater. Key words： Strategic alliance、Share-holding、Alliance forms