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The co-opetition between distributor and manufacturer in the CCTV industry: Awareness-Motivation-Capability Perspective
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Most manufacturers in Taiwan Security Industry are majorly doing production and OEM/ODM for international companies while only a few of them are dedicated to develop their brand awareness. For manufacturers who promote self-brand, they usually rely on the local distributors' fame to engage in local marketing and sales activities when they first enter into international market. Hence, the partnership changes in between distributor and manufacturer would significantly influence distribution performance. Following the security industry speedy growth and increase of manufacturer ability as well as relative size, staying cooperation with just one exclusive partner is unable to meet neither the manufacturer's expectation of market share nor its target of sales volume. So most manufacturer would seek increase in breadth of distribution. When manufacturer itself has ability to reach local market directly without distributor involved, the market overlap would come into existence, and it would lead to increase of possible competition with existing distributors; In the meantime, by development of Security Industry, the distributors would depend on product consultation as well as technical support from manufacturer more and more. Thus the relationship between distributor and manufacturer would be changed from initial cooperation to cooperation oriented co-opetition gradually. Using the cooperation between distributor and manufacturer as analytical unit, this research intends to probe into the dynamic changes in relationship over time between two parties through empirical analysis. Base on AMC model, this paper examines how the three key factors, organization features, competitive motivation and competitive ability, impact on distributor's competitive intension, and sort a systematic configuration how the react aggressiveness to different competitive tension affects distribution performance. The result of research is aim to provide distributor and manufacturer a reasonable constructure, and let both understand how to find best balance in such dynamic co-opetition relationship so as to stabilize cooperation and create best distribution performance.
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