Among global steel markets in recent years, China steel industry expands the fastest with the largest capacity and most fiercest competitions, also bringing the greatest impacts to global and Taiwan steel markets. A few aggressive Taiwan mills have set up their production facilities in China and commissioned. This study conducts in-depth analysis on the leading Taiwan middlestream galvanizers & coil coaters (the products are hot-dip galvanized & pre-painted steel sheets, hereinafter called ¡§galvanized & pre-painted steel¡¨). Besides, the steel works are categorized into Taiwan works, China works-Taiwan capital, China works-foreign capital, and China local works based on different capital sources. Analysis and evaluation are done in light of every activity in value chain.
Six types of galvanizers & coil coaters are categorized based on different facilities and processes.
Type I: Integrated galvanizers & coil coaters
Type II: CSP galvanizers & coil coaters
Type III: Independent galvanizers
Type IV: Independent coil coaters
Type V: Independent galvanizers & coil coaters
Type VI: Independent full-process galvanizers & coil coaters
Owing to their different market environments, development backgrounds, technologies, human resources and management, this study will analyze their strengths, strategies adopted, possible future development trends and potential challenges.
This study especially focuses on one issue: in the atmosphere of competition and cooperation between steel mills in Taiwan and China, how China independent galvanizers & coil coaters-Taiwan capital and Taiwan parent company upgrade their competitiveness is crucial.
Synthesizing related literature & theories, market & mill information and interviews, verifying by comparison, four conclusions are obtained as follows.
1. The more value chain activities a mill has, the more profits and stronger competitiveness it acquires.
2. Taiwan markets of galvanizing & pre-painted steel are already saturated. The competitiveness & development strategy a globalization enterprise should adopt is to increase its export percentages and establish offshore production bases.
3. For those mills setting up independent galvanizers & coil coaters in both China and Taiwan, the marketing strategies they should employ are described as follows.
3.1 Both China and Taiwan works receive orders and manufacture for their domestic markets. In terms of exports, only Taiwan parent company receives orders for both. But they export through Taiwan¡¦s existing channels globally.
3.2 To ally with different downstream industries and benefit each other.
3.3 China products are exported to ASEAN 10 nations, or 10+3, or 10+4, or any country that hasn¡¦t accuse China mills of dumping, whereas Taiwan products are sold to China, or any country that hasn¡¦t accuse Taiwan mills of dumping.
3.4 Products should be differentiated. Order receiving, production planning, lead-time and customer service should be flexible and elastic.
3.5 The chosen customers and suppliers must be big and strong in their region. Thus, the overall enterprise competitiveness is excellent.
4. In the past, steel companies self-expand to grow whereas today they grow via merger and acquisition.
Any enterprise must have its value-creation strategy, i.e. it must have a growth strategy to react to the fierce market competitions.
This study provides six recommendations for the competitiveness & growth strategies which could be adopted by domestic Taiwan independent galvanizers & coil coaters.
1. For the investors who invest in independent galvanizers & coil coaters for the first time, the first choice should be Type VI: independent full-process galvanizers & coil coaters. The second choice should be Type V: Independent galvanizers & coil coaters. Next, to set up an independent galvanizer is superior to an independent coil coater.
2. Independent Galvanizers & Coil Coaters should adopt the growth strategy that horizontal developing to a certain scale at the outset is the priority. Next, they should develop toward upstream instead of downstream. In order to eliminate capacity, they should ally with different downstream industries.
3. In the market of demand exceeding supply, mills usually self-expand to achieve larger scale. Nevertheless, when the market is oversupplied, it is recommended to adopt acquisitions.
4. Independent galvanizers & coil coaters choose the most beneficial investment items & scale and start their oversea development based on their growth strategies.
5. In the initial phase of plant construction, independent galvanizers & coil coaters should negotiate with upstream raw material suppliers regarding raw material supply matters. A good relationship should be built in order to secure stability of raw material sources.
6. To manage China mills-Taiwan capital and compete with other mills, the following measures are recommended.
6.1 To take advantage of the enterprise strength, develop specialized products and promote marketing features.
6.2 To promptly establish market reaction mechanism via the internationalization strategy of ¡§Integration-Responsiveness¡¨.
6.3 To employ human resources management to aid internationalization strategy.
6.4 Integration model created by overseas plant construction or acquisition can be adopted to integrate an enterprise¡¦s organization, culture and resources via dynamics management system.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0711106-093337 |
| Date | 11 July 2006 |
| Creators | Wu, Lin-maw |
| Contributors | Chang-yung Liu, Jun-ying Huang, David Shyu, 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-0711106-093337 |
| Rights | not_available, Copyright information available at source archive |
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