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The purpose of this essay is to study on the relationship among integration、competitiveness and performance。Recent decades, power tools industries have been faced severe competition, with worldwide competitors taking sufficient integration strategy to enlarge market share. In view of this, a firm should take various strategies to sustain competitiveness advantage as well as outstanding performance.
After research three key variables and its sub-variables, this study has found that there is no obvious relationship between integration and competitiveness. However, there is obvious relationship between integration and l performance. Moreover, there is relationship between competitiveness and performance. The research has shown that Europe power tools brand-Bosch, founded more than a century, with growth strategy not only focus on internal development, but also externally to broadening business scope at emerging countries, like China as so on. On the other hand, in 2004 American Power tools corporate Black & Decker, spending exceeding price to acquire Pentair Power tools to strength its corporate strategy and secure first market position of power tool from his ambitious competitor- TTI. Located in Hong Kong, TTI group was established as an OEM. However, less than 10 years time, by taking quick integration strategies M&A and alliances with other OEMs, TTI has become a big competitor of international power tools corporate. In contrary, Japan power tools firms-Makita and Hitachi, as conservative business style as other Japanese firm, with corporate expanding strategy mainly focused on internal expansion, merely on external M&A.
Moreover, through the research of multinational power tools corporate integration, this study has also found Taiwan OEM firms, have been produced power tools for multinational firm long term and did not establish their own brand. As a result, their performance inevitably to be effected after the M&A of international power tools firm. In addition, multinational firms established their own manufacturing at Emerging countries, for example Mexico and China on the one hand, and getting mature of China OEM’s production and market on the other, has significantly shared certain market share from Taiwan. In 2008 particular, global financial and sub-prime mortgage crisis has caused weak of house and motors consumption. Multinational power tools firms secure their own manufacturing capacity as a priority, deducted Taiwan outsourcing. As a result, Taiwan OEM’s revenue have been dramatically decreased in 2008~2009.
The result and suggestion of this study:
1.While the multinational firms take quick integration to enlarge market share to compete with competitors, firm should more considered, follow by the M&A, high debt leverage and low interest guarantee ratio will bring corporate into financial and operation risks. Therefore, firm should take thorough evaluation of integration strategy, not only the benefit of synergy, but also the business cycle of industry and world wide economic.
2.Taiwan domestic power tools OEM firms should understand the risk of being an OEM and build own brand name as a long term strategy, preventing corporate is dominated by multinational firm at all time. According to research，next wave of power tool integration will be dominated by Chinese firms. By then, Taiwan OEM firms will be less chance to compete with China firms.
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