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The Industrial Organization Analysis Of Industry Evolution Process In China

Posted on:2012-01-10Degree:MasterType:Thesis
Country:ChinaCandidate:D L TianFull Text:PDF
GTID:2219330371453337Subject:Industrial Economics
Abstract/Summary:
In most of the world, manufacturing industries and those products such as cars, televisions, air conditioners, etc, according to the microeconomic elasticity theory, which are elastic products. As the improvement of resident's income level, the needs of these products will increase quickly, which make the industry experience a process of large-scale entry. With the market developing, there will be great changes in the industry structure, which make one part of the enterprise grow powerful, but others will be merger & acquisition and some will withdraw from the market. The development of industry will experience a cyclical growth from development to decline. In the early development of the industry, as a result of little number of enterprises, in some areas, incumbent firms will be at the monopoly position, when the industry come into the growth period, there will be a large number of enterprises, which make the industry structure appear scatter competition. In the maturity of the industry, one part of the enterprise will be the leader as a result of the competition, but the other will be merger or exit, thus forming a duopoly market structure, in the recession of the industry, the enterprise will take integration strategy and promote technology innovation, which will make the concentration further improved.Our country is in the key period of adjustment of industrial structure and traditional industrial upgrading, to achieve this process, a group of enterprise will achieve expansion, but some will be eliminated. The development of industry will go through the transition from the initial development stage, weak, disorder, and gradually to mature, orderly, this is the result of the competition in the market, and also the result of the development of industry cycle. But, in the different periods of industry development, industry organization will present different characteristics, the analysis of characteristics of the development of industrial organization, which not only make us more clearly about the industry development, but also can draw experiences and lessons for other industries. The color TV industry in our country, is not only one of the most rapid developed industries since the Reform and Opening up, but also one of industries with most market features in the process of market developing. For more than 30 years developing, the number of color TV production arises from 32,100 to 118,000,000. In the process of development, color television industry is not only built a perfect manufacturing system, the production efficiency and technology level have been reached to the international advanced level, but also one of few industries which have international comparative advantage and competitiveness in the country. In the initial period of color TV industry, with repeated imported and construction, the scale of production has been expanded tremendously, which made our country in short time enter front rank of the global TV production, but also led to widespread criticism and controversy. In the process of development, with intense market competition, its comes to the balance, concentration, economies of scale, and the ability of independent innovation grows enormously, the competitiveness of products not in domestic but also in the overseas increases largely, the development process in this industry is the typical of market developing. In this industry, the market structure, conduct and government policy are very typical.In this paper, we take the process of color TV evolution and development as an example, which combined with the theory of industrial organization and industry life cycle, to analysis the industrial organization in the process of industry evolution, which can take some experience for other industries developing. According to the development process, we divided it into initial stage, growth stage, adjustment stage of development and steady development stage. From the analysis of market structure, conduct, performance and government policy in different stages, to solve the industry development how to evolution and development, how to realize rapid expansion in the development, how to achieve production concentration, and the government policy how to influences the industry developing.Finally, we discuss some typical problems about the color TV industry, such as repeated construction, exit barriers, price competition, the influence of mergers on the industrial structure and technical innovation, etc, through the analysis of reasons, to provide experiences for industry developing. To prevent enterprise massively entering, the government should give full freedom of the market, for general competitive industry, the government should no longer intervening the entry, but for great barriers to entry, such as natural monopoly and social public industry, the government should strengthen the entry regulation, avoiding excessive entry which will lead to low efficiency. In the government behavior as exit barriers, the government should not direct to intervene enterprise exiting, instead, it should establish and improve the social security system, to let the market mechanism decide the enterprise entry and exit. Price competition is the production of the market economy, also the promotion of the market development, for the price competition, enterprise should concentrate on the technology development of the key component, take the market demands as the guideline, accurately posited the products, implement product differentiation, reduce the cost of low-end products, strengthen the high-end products' market segmentation. The government should give full play of the Anti-Monopoly Law, for enterprise violating the market competition, the government should give strict regulations. For industries with huge technology gap, as the multinational company entering, the government should adopt appropriate policy to encourage them to develop, if government continuing to implement the protection policies, which is actually protect the foreign enterprise, not domestic enterprise. Therefore, when the government establishes the industry development policy, it should according to the characteristics of different industries to set different standards in enterprise entering and exiting, to generally guide the rational development of industrial organization. At the same time, the government's industrial organization policy should be consistent with market signals, giving full play of the market mechanism.
Keywords/Search Tags:Industry Life Cycle, SCP, the Color TV Industry
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