Business Integration of Automobile Industry between Taiwan and Mainland China---Application of Data Envelopment Analysis
|關鍵字:||汽車產業;整合;效率;資料包絡分析法;匯率;automobile industry;business integration;production efficiency;Data Envelopment Analysis;exchange rate|
Taiwan automobile market has reached the saturation stage. Although the present automobile companies have good operating performance, the market demand is hard to be expanded so that the Taiwan automobile companies can not get the greater competitive advantage. Oppositely, the automobile market in Mainland China is just on the growing stage. Their demand continuously grow, however, many companies with ineffective management cause the waste of industry resources. Moreover, facing the trend of global automobile business integration, it is necessary to study what kind of competitive strategy the cross-strait automobile companies should adopt to raise the performance of the overall cross-strait automobile industry. This research is based on the financial data of the cross-strait automobile companies and the methodology of Data Envelopment Analysis to analyze their efficiency. By the principle of maximization of industry efficiency, inefficiency companies will be merged by the first class company in the first-stage business integration. Afterward, we observe the trend how the integration will be influenced by the exchange rate. Therefore, We find some conclusions as follow: 1.There are some opportunities of business integration in the cross-strait automobile industry. The automobile industry in Taiwan has the better performance. Four of five evaluated automobile companies belong to high efficiency and the industry efficiency rate in Taiwan is 0.997. However, in the Mainland China, its automobile industry performance is not as good as Taiwan’s. Six of twenty-one evaluated automobile companies are high efficiency and the industry efficiency rate is 0.921. To combine both of cross-strait automobile industries, the industry efficiency rate is 0.936. That only 10 with high efficiency and 16 with inefficiency among 26 evaluated companies shows that integration space exists among both of cross-strait automobile industries. 2.Cross-strait automobile companies will gradually become conglomerate in the future. After the simulation of the first-stage integration for the evaluated automobile companies, the cross-strait automobile industry left only 10 first-class automobile companies. By the numbers of their merging companies, classify them into Conglomerate group (merge above 3 companies and amount to 3 companies), Medium group (only merge one company and amount to 4 companies), and Small group (be without merger and amount to 3 companies). Those data reveal that the centralization level of the cross-strait automobile industry resource is very high so that the more centralized resource in the future will make the cross-strait automobile companies gradually become conglomerate-oriented. 3.The currency exchange rate will affect the outcome of business integration. After the adjustment of the exchange rate fluctuation, when Renminbi depreciates 0.5 %, the outcome of the first-stage integration will change; when Renminbi depreciates 20%, all Medium group can not be the high efficiency and have to proceed to the second integration with the three companies in the Small group or other companies in the Medium groups so that they can make overall industry efficiency reach the high efficiency. It reveals that the fluctuation of the exchange rate will affect the outcome of the integration among the cross-strait automobile industry.