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Business Strategy Research of Biotech CMO (Contract Manufacturing Organization) Industry

Abstract
Bio-technology has been viewed as the ¡§star¡¨ industry in the 21st century. To entrepreneurs around the world bio-technology has offered an enormous opportunity for development. Recently partly because of the encouragement of government incentive programme a large number of bio-tech related firms have been established. In Taiwan these firms are associated with several characteristics: small but innovative; high growth; highly active; technology-intensive; high R& D spending; low on manufacturing; lacking attention to intangible asset and so on. By synthesizing the literature review and intensive case studying, this study has concluded that the bio-tech firms in Taiwan have faced a number of key barriers including lacking of capital and capital trapping, lacking confidence and infrastructure, lacking attention to R&D.
This study has adopted, in conjunction with those developed by Chen (year) and Tan (year), the Michael Porter¡¦s diamond model to develop its research framework (Porter, year). This study has also utilised the SWOT and the five force model analysis method in its framework. This study has analysed two firms from each of the following industrial sectors: The research framework was proposed in light of intensive literature review. The research framework was examined by the data collected from both primary and secondary research. The main data collection methods employed were personal interviews with experts specialised in bio-technology and some secondary information.
The key findings of this study include:
(1) Though some traditional bio-tech industrial sectors are already saturated, some bio-technology related sectors are still emerging and developing.
(2) It is found that the most important factors influencing CMO is the transaction cost, followed by resource dependence.
(3) Transaction cost is negatively related to CMO while resource dependence is positively associated with CMO. The degree of satisfaction of CMO is also positively related to the degree of CMO.
(4) Consistent with existing literature.The research concerning CMO needs to be explored from three aspects: economic costing, operational strategy and social costing.
(5) Strategic alliance is widely evidenced in the management, for example, in the areas of research and development and marketing. In the future bio-technology firms are suggested to well utilise the capabilities of major research centres in order to overcome the barriers caused by the inadequacy of institutional laws and lacking of research funds.
Key word:Biotech, Biotechnolog, Biotechnolog industry, CMO, CRO, SWOT Analysis¡C

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0816107-171509
Date16 August 2007
CreatorsWu, wen-chun
ContributorsMing-rea Kao, James C. T. Lee, Stephen D. Tsai, Chang-yung Liu
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0816107-171509
Rightsoff_campus_withheld, Copyright information available at source archive

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