Using Interbrand and Hirose model to assess the Brand Value: Formosa Petrochemical Corporation

• Main Authors: Chi-Chung Wu, 吳祈忠
• Other Authors: Wu-Der Tsay
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/98388922501832268388

碩士 === 國立高雄應用科技大學 === 商務經營研究所 === 97 === As price of petroleum rises and falls with large margin in recent years, the topic of concerns the energy industry have been focus on in the whole world, Taiwan is one of island country, it has no special energy resource by itself (crude oil) so the petroleum is the most important factor of the economics development in Taiwan. It is the condition of existence for Taiwan to depend on. But because of the change of the international crude oil price influence the development of the whole national people's livelihood of Taiwan, it is showing the petroleum industry to play the most importance role. Therefore, the Formosa petrochemical corporations were the selected subject of this research. Hirose methodology (METI, 2002) was applied to evaluate the value of the Formosa brand, and the results were compared with those which were induced by the Interbrand model. Then, the difference was analyzed and the empirical analysis after renaming was conducted to evaluate the exact value of the Formosa brand. With various Interbrand models, it was found that the petroleum market was still oligopolistic and almost monopolistic. Besides, consumers remained the price takers. Thus, the influence of the renaming on the brand value was limited. The brand value of Formosa is positive and has been sliding year by year, which indicates the implying shrinkage of the brand value. In this study, through analysis, the change of the brand value of Formosa was found subject to the international petroleum price and the domestic market competition change. Also, in terms of Hirose methodology, it was found that the manufacture-oriented Formosa shall value the influence and take good advantage of its brand name in the market to create better niche and market value and to avoid over-dependence on the international petrol market, which was with economic fluctuation affecting the competing ability of Formosa. The Interbrand model intended to make more subjective estimation, which might exaggerate the brand value. Under Hirose methodology, the estimation of the brand value was more objective since the calculation was conducted with the management performance data on sales, cost and promotion that were compared with those of the target companies. And with measurement of the brand value of Formosa, the results of this study showed the essentiality of analyzing the brand value of the other traditional industries, such as Formosa. The current study did remind the other domestic manufacture-oriented industries of valuing the influence and worth of the brand name in the market in order to adjust the management strategies to create better niche and market value.