Abstract
In Malaysian palm oil industry, domestic firms are getting competitiveness rather than foreign companies. And then, I have a question for Japanese oils and fats industry, which does not have strong power in plantation sector, which channel do they select to procure the palm oil from Malaysia. In this thesis, I aim to examine vertical coordination system of palm oil procurement and to consider the efficient procurement channel for Japanese companies. To achieve these objectives, this thesis adopts analytical view point which focuses on the decision making process of channel selection of firms and following analytical framework. (I) Examining the motives and barriers of firms to entry some vertical level. (II) Analyzing the actual coordination activities of firms and the reason of adopting its activity. This analytical framework will be effective to study the origin of distribution structure from case study. The results are following. (1) There are motives to entry palm oil industry such as supplying cheap row materials and reducing distribution channel. Then, there are barriers such as difficulties to construct the selling route of by-products (I). (2) Because of barriers, many firms select procurement route via trading companies which enables to obtain economies of scale without entry expenditures (II). (3) Running worldwide palm business or taking over the existed companies, which enable to get distribution route of by-products, are the important factors to access palm oil industry (II).
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
