A Strategic Alliance Approach for the on-line Game Industry between China and Taiwan

As the gradually growing market of China, many Taiwanese companies are finding new opportunities in China for extending profits. The strategic alliances for on-line game industry between China and Taiwan have become an important topic in this industry. Based on data envelopment analysis (DEA) and heuristic technique, this study proposes a new approach to resolve the issues. The objective is to provide an effective search to find the right strategic partner when an on-line corporation implementing strategic alliance between two countries, as well as the analysis of efficiency and resources distribution after alliance. Realistic data of 10 companies are collected from published stock market of both China and Taiwan. The results show that China Netease is the best combinations for alliance with most of the Taiwan companies. This is sound for enterprises to find the future candidates of strategic alliances by many industry peoples.