Abstract

This study primarily analyzed the market concentration and market dominance of international tourist hotels in Taiwan. The results are presented as follows: (a) Northern Taiwan was classified as a lowly concentrated market, which is similar to the fragmented industry described in Michael Porter’s Five Forces of Competitive Position theory, in which firms are extremely competent and no individual firm can become the major player in the industry. (b) Central and Eastern Taiwan were classified using the four-firm concentration ratio (CR4) as having an industrial structure of highly concentrated markets. (c) CR4 was employed to measure the industrial structure of Southern Taiwan, and a moderately concentrated market was obtained. The second part of this study involved analyzing the market dominance of leading firms. Only when the industrial structures were categorized as highly concentrated markets by using CR4 for measurements and when the firms that held the largest and second largest market shares formed strategic alliances, can the leading firms demonstrate market dominance, and their operation performance can be enhanced by employing marketing strategies.

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