| dc.description.abstract | This thesis investigates Taiwan′s lutein product market, which constitutes the largest segment of the vision health supplement market. Utilizing the Structure-Conduct-Performance (S-C-P) framework from industrial economics, the study examines the industry′s fundamental conditions, government policies, market structure, firm behavior, and business performance.
The findings of this thesis indicate that Taiwan heavily depends on imported raw materials for lutein products. In terms of technology, manufacturing equipment offers advantages of lower production costs and shorter delivery times. The industry faces challenges with talent outflow, impacting technological innovation and competitiveness.
Government regulations are identified as limiting market competitiveness. Taiwan′s lutein product market structure is characterized by a low-level oligopoly, with numerous firms and relatively low barriers to entry for new players. Market share analysis reveals a declining trend among major firms from 2019 to 2022, influenced by the rise of smaller competitors.
Firm behavior in pricing is influenced by raw material choices, marketing strategies, and distribution costs, supported by the market′s low-level oligopoly structure, which allows firms considerable pricing power as indicated by high Lerner index values. Larger firms typically adopt penetration strategies in advertising, while smaller firms focus on consumer education. Research and development activities show larger firms leading in new product introductions, while smaller firms innovate through product optimization and enhancement.
Analysis of business performance using the Lerner index suggests both large and small firms achieve significant profitability by pricing products well above marginal costs. Beyond financial metrics, the thesis also examines consumer satisfaction and sustainability efforts, highlighting the greater influence of larger firms due to their superior financial resources.
Based on these findings, recommendations are offered for government entities to update regulations to enhance market competitiveness. Taiwanese firms are encouraged to invest in research and development of raw materials, innovate to create high-value-added products, deepen involvement in e-commerce platforms, and refine targeting of specific customer segments. | en_US |