Automotive industry in China is probably one of the most potential emerging markets all over the world along with the trend of the ¡§China Flu¡¨. More than that, the well-know market demand over the 2002 is prosperously exceeded over the average estimation. The total vehicle production quantity is 3.25 million pieces versus almost the equivalent sold out quantity, the attractive numbers pushing China Auto market upward the rank of the 4th largest regional market, and become the only market cranking upward with the growth rate at 30%, while most of the other markets are suffering severely worldwide recession.
China automakers and automotive electronic components makers become world-class auto manufacturers' strategic partners. Therefore, the research deals with the extent to which multinational tier 1 and tier 2 enterprises and China local makers clustering segment as the new China auto industrial landscape rely on Taiwanese automotive components suppliers with the most suitable entry mode as well as the competing advantage throughout the newly emerging supply chain in China OE segments, how Taiwanese suppliers find a way to be upgraded as a global player via the collaboration synergy of China market.
The methodology for the research is utilized the case study approach and the interview with the leading edge industrial players for both China auto makers and multinational Tier 1 giants. After literature review and case study analysis, we highlight the most suitable entry strategy as ¡§niche strategy¡¨ and ¡§collaboration alliance¡¨ with the deliberation in terms of the Taiwanese makers SWOT analysis. For Taiwanese makers, they have some advantages, such as 1). leverage of resources; 2).integrator role played between Western and China connection; 3).booster of Taiwan¡¦s globalization; 4).enlarging the market place from regional to international level; 5).smooth over the political conflict for enhanced collaboration to reach the win-win synergic solution.
Tenth Five-Year Plan published in June 2001 as the highest regulatory that is the major forces driving China automotive industry forward, in which the motor vehicle production was expected to reach some 3.2 million in 2005, including 1.1 million cars. Automotive industrial added value will reach RMB 130 billion, accounting for 1% of GDP.
By 2005, the 2-3 large automotive enterprise groups ( First Auto Works, Shanghai Auto Industry Corp.,and Dongfeng Motor Corp.) with certain international competitiveness will be formed and fully supported by the state, making use of all kinds of preferential policies, whose products share over 70% of domestic market with some exports. The 5-10 large enterprise groups for automotive parts and components with initial international competitiveness will be built up. The top three enterprise groups for key automotive parts and components will have market share 70% of domestic market. Technical renovation projects in line with the Tenth Five-Year Plan of automotive industry and beneficial to the restructuring of automotive industry will be given priority to indirect financing and a modern development, production and marketing system will be encouraged to establish.
Consequently, the State encourages the autonomous development of leading parts and components enterprises to enhance their competitiveness. Different ownerships are encouraged to participate in the development of auto part and component industry with the policy of the strategic alliance in order to innovate a newly modern value chain with the world wide expertise ¡¨clustering effects¡¨. Leading enterprises emerging as ¡§super suppliers¡¨ as innovation term of ¡§tier 0.5¡¨ for Automotive parts and components supported by 3 OE Giants FAW, SAIC and DMC.
The tier 0.5 super suppliers such as Fawer under FAW, STEC under SAIC and DFT under DMC will be guided to develop the specialization of the system provider and module integrator for effectiveness of economies of scale.
The research has two implications ---the interface strategy of Taiwan automakers is the ¡§niche strategy¡¨ and ¡§collaboration alliance¡¨. As far as the penetration and competing strategy development of Chinese market is concerned, the ¡§niche strategy strategic role played by Taiwanese have an absolute effect on the second level OE car makers to avoid competing with larger firms by targeting small markets of little or no interesting to the larger firms. Collaboration alliance connecting both of Mainland China domestic makers to the western countries facilitated by horizontal collaboration for market development and technology enhancement, because Taiwan belongs to the same cultural region as Mainland China. Besides.
The research also suggests the competing strategies; such as reinforce the self-technology capability incubator, leverage of Taiwan IT and IC industry competing advantage to back up the automotive electronic upgrade, emphasize the role played as an multinational enterprise, strengthen the global wise alliance as well as the worldwide marketing channel connection.
The active participation of Taiwanese suppliers is also an essential factor that raises the status as interface strategy. Taiwan makes use of core competences to play the role of ¡§critical unique link¡¨ without being left out from the emerging value chain of the highly potential China market.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0716103-170312 |
| Date | 16 July 2003 |
| Creators | CHAO, JUI-CHUN |
| Contributors | G.-Gary Hu, David Shyu, Chang-Yuan Liu |
| 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-0716103-170312 |
| Rights | not_available, Copyright information available at source archive |
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