Return to search

The Research on the Entry Mode and Operation Strategy for Taiwan Enterprises invest in Mainland China--Example of the Construction related Industry

ABSTRACT
Construction industry was used to be famous as the leader of whole industry, and had close relationship with prosperity, influenced the development of industry. However, the industry in Taiwan now is facing economic moves in circles and structure adjustment, and the key roles of the leading industry were replaced by high-tech industry. There were many documents about oversea entry mode and management abroad in Taiwan, but the records almost tended to manufacturing industry especially concentrating on the electronic industry, seldom discussed about construction industry. This study base on former experience and relevant theory in accordance with entry mode and operation strategy for construction industry which already to or desire to invest in Mainland China, and try to bring up some actually suggestion and manner, hopping that it can contribute to government for reference to draw up guidance and assistance policy. At the mean time, it is anticipated that this study could also assists the construction industry to make a right determination at business operation in Mainland.
This study has found that even through the construction industry lied in difficult operation and low profits recently, the willing to Mainland China for invest is still weak. Most of them were changed their business to decoration, real estate, housing management and building materials industry .The main reason is people thought Mainland market still has some uncertain factors till now.
According to this research, the restricted factors on laws & decrees and entry threshold are main influences for construction industry, which attends to invest in Mainland China. As above result it bring up many different kinds of register, such as borrowing a license form local company, registering by local people, acquiring local company, attaching to local company for cooperative business operation, registering as Taiwan merchant and registering as oversea company..etc.
On the topic of operation strategy, traditional operation strategy for construction industry in Taiwan are overall cost leadship, economical scale, brand priority strategy, turnkey with funds raised by them, market segmentation. This study base on four strategies: market extension, market development, market penetration and diversification, which could further understanding the similarities and dissimilarities between theory and practice for construction industry. Investigating result shoes that the construction industry still place greater expectation in Mainland China, it is hope that they could use their superiority in company management & control, financial affairs control, marketing sale & development to coordinate various strategies such as diversification, brand priority strategy to develop new market, and in specialized field to get reasonable price .At the same time, they also wish themselves to be competed against in different market level, and choose a professional specialty to reach the goal .
In general, this study has also found that the reasons for construction industry could not go all out to Mainland are the restriction on law & decrees in cross-Strait, high entry threshold relatively, difficult to shift business from one side to another, industry scale & capital insufficient, still raw in Mainland market, not have steady subcontractor, difficult to get business from the local government, lacking international view & globalization experience. It results that most of the construction industry now still can¡¦t make a decision to invest in Mainland China.
The concrete suggestion of this study includes long-term & planned way to overall arrangement, carefully choose the right entry mode, localized in new business area, strategy alignment, seriously deal with account & tax, to be familiar with industry profession laws & decrees, specialization & diversification, operation management & cost control, train up globalization specialized field ability, to seize the opportunity of joining the WTO & applying for the Olympics, and other particular considerations such as region , traffic , climate ..etc.
Restricted by the incompletely open up cross-Strait policy, the construction industry couldn¡¦t go all out to Mainland as manufacturing industry. Even through it was noticed during sample designing stage; the result of this study is difficult to get a universal experience in order to further analyze the entry mode of the construction industry. This study also uses case study to enhance the contents, but the number of sample and its representative is still insufficient. Herein, the successor could rely on more experience of construction industry and this topic to carry on further research in future.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0621102-094143
Date21 June 2002
CreatorsLiu, Hui-Min
ContributorsIng-Chung Huang, Jin-Feng Uen, Jun-Ying Huang
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-0621102-094143
Rightswithheld, Copyright information available at source archive

Page generated in 0.0476 seconds