As affected by the massive capital into the Mainland China known as the world factory, not only the national business environment has been changed dramatically, but the outgoing trend of various industries has also been raised severely. In particular, the competitive advantage of the information sector has reflected a sign of falling behind in gradual. On the other hand, 3C electronic products on the tendency toward the flipping and short design have been promptly developed in the prevailing evolution process, along with necessity of rapid upgrade on heat-radiating technique. The heat-radiator module industry becomes the most heat as the CPU radiator plays the vital component of the information sector. Following high-tech industry and information sector shifting their production plants to mainland, however, small enterprises based on numerous satellite factories around the radiator OEM parent company encounter an instant dilemma for lack of the Taiwan¡¦s order and market. For this instance, an essential subject what they confronted and considered is to constitute the business strategy adaptable to the existence.
According to the study, it was deemed that seeking for the suitable entry model and defining the feasible business strategy are the primary rules of the Taiwan firms toward the mainland investment at the initial stage. Since factors that they took into considerations overlapped and influenced one another, this research on both the basis of the relevant literatures and the demonstration of the practice business case probed into sorts of entry modes and considering elements that the upstream electronic parts suppliers of the radiator industry among small and medium enterprises migrated to the mainland. It also explored the business strategy along with its implementation and achievement through all strata of core competency, HR policy, value chain activity and so on while integrated the related factors of counterparts, as well as submitted suggestions and deliberations on the strategic aspect for the subject firm and the interesting relevant sector as a result of 5S and SWOT analyses.
The object of this research was a PCB process assembly factory engaging in productions of heat-radiating fans ¡V one of the small-/mid-sizes electronic parts suppliers, basing on the case study approach by processes of the concerned records conference, research structure confirmation, interview subject affirmation and profound survey fulfillment to collect data directly.
In the respect of the adaptable entry model that the ¡§A¡¨ firm got to set up in the mainland was primarily considering on the country, industry, market, itself and etc. It included political risks of the cross-strait, low, regulation and system of the mainland, infrastructures, and administration efficiency of the government for country factor, as well as industry cluster formation, strategy alliance of major downstream correspondents, and growth potential of market for industry factor. The firm itself also considered compatibility, dependency, business strategy, financial capability and core technology ability of partners. Whereas product factor, assessments were taken on the life circle, time to market and decision making. Finally, the ¡§A¡¨ firm was the venture exclusively with its own investment on the mainland after all of the aforesaid was cohered as the evaluation criterions of control strength and resource input.
This research also suggested that exclusive venture is the adaptable model for satellite factories or outsourcers to penetrate into the mainland with less capital, stable order and predictable business profits. In the primary stage, the lease of local premises and installations is regarded as the rational practice to diminish the managing risks of vast investment in addition to swift mass productions and investment retrieve.
With the prospective business strategy, the ¡§A¡¨ firm proceeded with the equal combination of the costs shrinkage and diversifications. Namely, competitive advantages were derived from the diversified quality products and the cheap prices underpinned by the total low costs. Aggressive engagements for the latter included foundations of critical mass facility, strict cost control, production capability and utilization rate promotion, productive efficiency improvement, and effective procurement system, along with persistent process upgrade, quality control and mass production velocity advancement. The focus on the former featured on the R&D experiences accumulations, production molder creation, process technique and quality management enforcement, strategy alliance with OEM parent firm to strengthen R&D, new technology engrossment, customer service, realistic delivery, in time to market and so on.
In the alternation of miscellaneous objective conditions, this research proposed that business model as considered has to be gradually transformed from vertical integration to horizontal segmentation. Relatively, it will either blend the mainland local industry or nourish the native suppliers to compete with the Taiwan products in the mainland market. If the radiator OEM parent company shifted the said horizontal segmentation style, for instance, numerous satellite factories and outsourcers of small and medium enterprises should seek for the feasible direction to link up with the local counterparts for technique R&D promotion toward the mainland market with product application, commercialization ability and management technology.
Furthermore, it has been fragile for small and medium enterprises to convert the professional knowledge into intellectual property rights while popular examples such as certain inventions missing advantages resulting from the mainland imitation have been seen everywhere. Thus, it also could be the feasible way for small and medium enterprises to positively participate in the relevant R&D alliances with logical input for intensive interests. Such intents emphasized on R&D and innovation stress, technology upgrade initiation, well knowledge management, literalizing and digitalization, and commercialization and value creation. Through the strategy consideration, the decision on transferring of technology for becoming one member of the strategy alliance or the transformation model of upstream and downstream plants has not only attained the global leverage, but also acquired benefits from technique franchises, in addition to the accomplishment of the win-win prospects for the Taiwan investors on the great China sector.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0818105-134740 |
| Date | 18 August 2005 |
| Creators | Chen, Terry |
| Contributors | I-heng Chen, HSIN-CHIA HUNG, Ming-rea Kao, Bih-Shiaw Jaw |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0818105-134740 |
| Rights | restricted, Copyright information available at source archive |
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