Dynamic Decision Model for Entrepreneurial Innovation Management and Market Development Strategies – Case Study of Food Service Industry in Taiwan

• Main Authors: Nelson Jose Cruz Flores, 古奈森
• Other Authors: Min-Ren Yan
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/62j7vw

碩士 === 中國文化大學 === 全球商務碩士學位學程碩士班 === 106 === Nowadays, the market in the dinner industry in Taiwan, according to previous studies, is competitive and saturated; The Taiwan dinner market has advanced from the simple sale of meals for profit to the whole process of the promotion and service food to consumers. Furthermore, "Brand" has become a key indicator for companies, which are actively investing in resource development. Improvements and implementation of innovative products must go by the hand with systematically analysis and the application of strategies in a dynamic context; in that way have a successful commercialization of innovative products and services. The development of innovative product can give companies a competitive advantage in the market, giving add value to their services and allowing them to earn a higher percentage of the market share. In this sense, a factor of extreme importance is to establish the appropriate prices for these new products and services, since the pricing decision is considered as one of the most important tactics for companies to outperform their rivals in a competitive market. Therefore, makes it important to be able to implement strategies that allow making the best decision and adapting in a market that is constantly changing with the emergence of new technologies. Consequently, this research aims to develop a suitable price model to improve the ability to analyse the strategic role of price decisions when the company want to enter a market with an innovative product or service from a systematic point of view. The methodology of System Dynamics and its approach of Strategy Dynamics was adopted as the main methodology in this research. A new pricing model of the dynamic strategy was also proposed, which reflects the competitive behaviour of the prices of innovative products in a competitive market. A simulation model is developed with a real case study of the market of the dinner industry, a Taiwanese brand of Sushi and a Japanese one, that compete for gaining more participation in the Market of Taiwan; And then demonstrate their decision support functions by analysing the strategic behaviour of prices and their impacts on the competitive market. Finally, the management implications for appropriate pricing strategies are evaluated through simulation and analysis of sensitivity interacting with price and quality factors, comparing strategies according to different scenarios. Based on the results derived from simulations and sensitivity analysis, with the proposed price model, an optimal price zone can be established in which the company could improve his profitability and increase his market share, taking into account the factors of quality to establish an adequate and competitive prices in the market, providing substantial benefits to achieve the company objectives. Keywords: Competition, Decision Support, Pricing, Innovation, System Dynamics, Strategy.