| Summary: | 碩士 === 東海大學 === 國際貿易學系 === 102 === Abstract
This paper is based on the model from Buehler and Schmutzler (2008), Ping Lin and Wen Zhou (2013), Nadav Levy (2012) and discuss the difference between the cost of a vertically integrated manufacturer of core technology and non-vertically integrated manufacturer of non-core technology, the impact of alternative products, the impact of the sum of the smartphone and tablet computer market size and the cost down of process of innovation and R & D investment, the price of key components, the sales of core products and non-core products, products’ prices, manufacturer’s profits. The difference between this study and Buehler and Schmutzler (2008), Ping Lin and Wen Zhou (2013), Nadav Levy (2012) studied lies in the join discussion of core technology products and non-core technology products. After the analysis, we obtain the following results:
1. A non-vertically integrated manufacturer increase the investment in research and development process, the non-vertically integrated manufacturers will become more competitive to compete with vertically integrated manufacturers.
2. The greater the product’s substitution, the non-vertically integrated manufacturer’s products have the most competitive and even threaten the vertically integrated manufacturer’s market share.
3. As the market size increase, vertically integrated manufacturer buttressed by many advantages that can generate profits and continued to increase R & D investment, but non-vertically integrated manufacturers will face shrinking crisis.
Keywords: Key Components, Process innovation, Vertical Integration,
Cost Differences, Product Substitution, Market Size
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