An economic feasibility analysis model for manufacturing technology and capacity alliances
Date Issued
2008
Date
2008
Author(s)
Kuo, Chien-Hung
Abstract
High-tech manufacturing industries have the following characteristics: product demand is very volatile, requires high investment capital and technologies are advanced at a rapid pace. Also, the notable business cycle often makes the demand and supply imbalanced, thus increasing the operating risk. Therefore, the capacity investment decision and the strategy of a firm will determine its profitability and long term competitiveness. Strategic alliance has recently become a new trend of strategy as it is able to alleviate problems in the areas of manufacturing, technology, sales and capital investment. sually, technology and capacity aspects are stipulated in an alliance contract, for example, a fixed amount of authorization fee is paid by the manufacturer to obtain the manufacturing process technology; or when a new company is created through joint venture by the established firms, in return, the new company must reserve a portion of capacity and sell back to the investing firms. Therefore, the amounts of authorization fee and capacity allocation ratio are important issues during alliance formation.his study discusses the alliance in the high-tech manufacturing industry, including issues from the pre-alliance formation to the post-alliance formation. Furthermore, an alliance formation decision process is used to determine the optimal capacity for a firm before alliance formation. The key factors for the formation of an alliance are discussed under difference scenarios. As the industrial environment and the content of the contract alters, the relative bargaining power between firms are also changed, thus a company must adopt a new perspective and adjust its strategy. This study is presented in aiding the firms to better respond to the industrial environment and to the opponent’s strategies, and more importantly, to take advantage of alliance formation.
Subjects
strategic alliance
capacity planning
bargaining power
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-97-R95546014-1.pdf
Size
23.53 KB
Format
Adobe PDF
Checksum
(MD5):76219a60bc48c6496bb1ef7015d222b8