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The effect of Taiwanese Hypermarketers' soaring power to their suppliers.

¡§The Wal-Mart Effect¡¨ indicates how Wal-Mart impacts the stakeholders such as employees, supplier, community and the environment when it becomes one of the biggest companies in the world. The effect on its suppliers is not only confined to the
regular transaction relationship, but also their decision making. Even the Procter and
Gamble, the giant company of consumer goods, has to increase its bargaining power to Wal-Mart by merging other brands.
The ¡§mass selling¡¨, which was first introduced into Taiwan by foreign hypermarket in the 1980s¡¦ impacts the original retailing business of Taiwan. After
being entering and withdrawing by several companies, the hypermarket business in Taiwan is now mainly dominated by three companies, Carrefour, RT-Mart and FE-Geant, which have fierce price competition between one another.
This study attempts to find out whether the bargaining power of the hypermarketers to their suppliers is increased these years as well as the effect of this
power to their suppliers by using the case-study method. We interviewed one hypermarket company and several suppliers of hypermarket companies in order to know their content of transaction.
It is found that the hypermarket industry in Taiwan decayed in recent years, but the dominant companies, such as Carrefour, still has an increasing power to their suppliers. This increasing power reflects mainly on its imposition of sales commission and promotion fee. Besides, hypermarket retailers have more power to affect the smaller suppliers¡¦ the decision making of products. From the cases that are discussed
in this paper, it¡¦s also found that the smaller suppliers would avoid price-competition
of the hypermarket retailers by supplying products with few differences in specification. However, these suppliers should pay more attention to their cash flow to ensure their ability to contract with hypermarket retailers which usually have strict payment conditions.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0129108-170158
Date29 January 2008
CreatorsChang, Che-chang
ContributorsHsien-tang Tsai, Cher-Min Fong, Chin-Tarn Lee, Cher-Hung Tseng
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0129108-170158
Rightsnot_available, Copyright information available at source archive

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