Combining data envelopment analysis and competitive dynamic theory for exploring global smartphone manufacturers' performance

Wei-Lun Tsai and Ping-Teng Chang
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Wei-Lun Tsai: Department of Industrial Engineering and Enterprise Information, Tunghai University, Taichung, Taiwan
Ping-Teng Chang: Department of Industrial Engineering and Enterprise Information, Tunghai University, Taichung, Taiwan

Journal of Administrative and Business Studies, 2018, vol. 4, issue 2, 109-125

Abstract: According to the latest research report released by th Global System for Mobile Communications Association (GSMA), it is estimated that the number of mobile user will increase to 5.7 billion by 2020. Representing Mobile Communications and smartphones has changed the world. In the recent decade, the smartphone market has been booming. Taiwan manufacturers have entered the market early and have good performance. However, in recent years, smartphone annual market sales has gradually decreased, leading to intensified market competition. This study explores the well-known brand manufacturers in the smartphone market. In a dynamic environment, how the interaction between competitors affects the competition results and finally affects the business performance. This study uses the competitive dynamic theory as an analytical tool to explore the competitor's competitive process and apply Data Envelopment Analysis (DEA) to calculate the performance of firms after competition. Finally, the results are combined with the BCG matrix to summarize the direction and suggestions for Taiwan manufacturers to improve further. The results of this study are: 1. All of the competitor’s efficiency performance are maintained in a good condition. The key factor that impact on whether a company can continue to grow or not is Malmquist Index. 2. Dominant Design Paradigm can be regarded as a demarcation point. Before that, patent application, trademark and intellectual property right as the main competitive advantage. After that, supply chain integration, marketing channel, brand value as the main competitive advantage.

Keywords: Competitive dynamic; DAE; BCG matrix; Smartphone (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2018:p:109-125

DOI: 10.20474/jabs-4.2.5

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