Global telecommunications liberalization and a series of policies continually promoted by the government have contributed to comprehensive liberalization of the domestic telecommunication market. In addition to complying with the national telecommunication policies, the major duties of Chunghwa Telecom are to create corporate value and maintain sustainable operation following privatization, as it confronts rapid advancement in telecommunication technologies, a liberalized market, a changing operational environment, and intensive competition from aggressive competitors. Hence, Chunghwa Telecom needs to address the important challenges in creating a new competitive edge, developing new operational concepts, designing and implementing corporate strategies, utilizing resources, and enabling sustainable development.
This study offers an analysis and discussion on Chunghwa Telecom¡¦s corporate competitive strategies following its privatization, as well as on its strategies and financial evaluation in the case of merging Senao, a distributor. SWOT and BCG Matrix are used to analyze the strategies adopted by Chunghwa Telecom, types of its business units, its relative market position and competitive situation, in order to explore the strategy implementation options, optimal allocation and utilization of financial resources, and development direction, to help this company fulfill its corporate strategies. Moreover, the results obtained through evaluation and analysis of the merger and acquisition strategies adopted in the merger and acquisition case are used to verify whether the value and implementation of these strategies correspond to the suggestions provided in the analysis using BCG Matrix, for reference on future planning of enterprise development strategies. The conclusions made in this study are summarized below:
1. Chunghwa Telecom has a solid corporate foundation, relative advantages, excellent development opportunities, and outstanding business units, which provide an advantageous foundation for continual development. Its strategic business units (SBU) are mostly cash cows that can generate great cash flow. There are two stars: broadband service and circuit lease, and one question mark: IPTV. Regarding corporate strategies, the strategic considerations by Chunghwa Telecom in maintaining the advantages of its cash cows (fixed network and mobile service), increasing their competitiveness, and maintaining their relative market share, are therefore necessary and cannot be ignored.
2. In addition to its leading position in market share, Chunghwa Telecom has quickly entered the distribution market by its successful vertical integration with a communication product distributor on the basis of a long-term strategic alliance. The efficient merger and acquisition strategies and optimal utilization of resources create a win-win situation.
3. Under the guidelines for SBU distribution, the benefit gained from the case of merging Senao is higher than that of other investment cases, as the basis of the cooperative strategic alliance and implementation of the strategies regarding utilization of financial resources and operational personnel contributed to fulfilled corporate strategies and a new corporate value. This case can therefore serve as reference for future investment.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0823108-141402 |
| Date | 23 August 2008 |
| Creators | Huang, Jen-Shan |
| Contributors | So-De Shyu, Jen-Jsung Huang, Der-ming Lieu |
| 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-0823108-141402 |
| Rights | not_available, Copyright information available at source archive |
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