| dc.description.abstract | Following the increasing trend of globalization, many corporate entities have begun using the “merger” to increase their competitiveness in order to face the increased challenges of a highly competitive corporate environment. In 2002 Taiwan formally introduced “corporate merger legislation”, giving local corporations a legal framework with which to engage in merger strategies, resulting in many such mergers being carried out in Taiwan. Additionally, in recent years many corporations in the international market have been combining high-tech products with fashionable designs with the goal of creating innovative and fashionable high-tech products. For example, in 2007, the Korean mobile phone giant LG cooperated with the popular fashion designer PRADA to jointly create trendy and fashionable cell phones, combining technological innovation with fashion to create a popular new product.
The companies mentioned in this research believe that the successful company L merger also led to the unusual cooperation in 2007 between Phillips and Swarovski two completely unrelated companies, bringing together different types of expertise, to create artistically designed technological products, giving both companies new business opportunities. Additionally, the merger between the aforementioned companies served as a major research precedent for the merger between Taiwan’s first high tech company and a fashion designer.
As such, this research is primarily focused on research inot the merger process between the aforementioned companies and company L, including the motivation behind the merger, how they chose their cooperative partners, and how integration was supervised during the merger process. The aim to learn how the companies involved can maintain efficient management during the process and discover the factors that contribute to a successful partnership, to use as future strategic advice for other companies.
This research is conducted using case analysis, interviews with upper management, and related information gathered from the literature as well as other secondary data sources for analysis. Based on our research we have come to 3 conclusions. First, the case companies have, in order to deal with the rapid changes in the corporate environment in recent years, as well as the recent international market trend of combining technological products with fashion designs, concluded that undergoing mergers and partnerships with fashion designers is an effective way of increasing their competitiveness; additionally, the case companies also hope that through mergers they can bring in new, fresh, and creative ideas in order to successfully market their products in the greater Chinese market. Second, the case companies, having conducted evaluations from many angles, believe that merging with company L will not just increase their own revenue but can also increase the brand recognition of their products on the greater Chinese market, causing them to begin the merger process starting in 2007. Finally, after completion of the merger, the case companies have greater protection against potential risks, allowing them to quickly stabilize the operation of their companies, increasing the efficiency and speed of integration. Additionally, this research proposes 3 strategic suggestions for companies considering a merger, including; studying foreign precedent merger cases of similar companies, improving the compatibility of the corporate culture for both companies, and focusing on human resource management.
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