| Summary: | 碩士 === 朝陽科技大學 === 企業管理系高階產業經營碩士在職專班 === 102 === It is wondered how construction industry utilizes vertical integration, with upward integration with construction companies and downward integration with relevant businesses, for the relationship bonding to create market opportunities and market niche and increase the revenue. Under such a dynamic environment, this study tends to explore how construction industry develops the operation model with vertical integration. By interviewing a case company, the relationship with builders developed during the promotion of vertical integration and the effects of vertical integration on business performance are discussed to maintain an enterprise’s competitive advantages for the survival and profits.
It is found in the research that environments determine strategies. In the land development process, construction businesses would construct two models when developing relationship with builders during upward vertical integration. First, strategic partnership could assist builders in setting materials based on construction and provide comprehensive services of planning, design, construction management, maintenance, and business services so as to reduce construction costs, enhance construction control ability, and avoid unnecessary waste. On one hand, it could stabilize the source of performance and enhance market niche; on the other hand, it could promote the market value of buildings. Second, investment partnership presents the investment relationship with builders, who are similar to the land development department of a case company in the industry chain, to construct the strategic resources and produce huge demands for cash flow by continuously developing land. For construction businesses with large demands for funds, it could be the best strategic resources. The business and management after vertical integration appear significant performance on the case company.
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