A Study of the Strategies of Hon Hai Precision Industry Co., Ltd. / 鴻海精密工業股份有限公司策略研究

碩士 / 國立中山大學 / 高階經營碩士班 / 102 / Under the current circumstance of globalization, in order to reduce costs, international businesses often outsource to companies in lower-cost nations. Thus regional sub-manufacturers utilize their own resource advantages to create sustainable competitive advantage (SCA) and make profit. However, the Taiwanese industrial chain of sub-manufacturers nowadays faces the cutting-price competition under the fact that they’re incompetent in innovation and that they don’t have resources as abundant as their competitors.
In the past, when Taiwanese companies implement strategies for internationalization, they chose technology-oriented ones, but in the end the key to success was often grasped by those who effectively distribute resources to increase productivity. In the mean time the competition in global industries turned from an industrial one (of land, capital, labor) to an intellectual one (of intellectual capitals), thus it will be a highly regarded issue that how companies can achieve better competitive advantages and be more effective by integrating resources to create higher add values.
Hon Hai is a successful case. It is one of the most competitive, largest, highly evaluated and quick growing Taiwanese international group among global 3C sub-manufacturers. Its contracting factories are located all over Asia, Europe and America. It entered the international market through strategic planning, construct and implement step-by-step effective supply chain management and value creation strategies, and formed its competitive advantage. This process can be analyzed by various theories, especially resource-based views and demand side view.
Hon Hai has a fine supply chain management system like “no time differences management” which can produce prototype of products customer required in 48 hours, so both its entry strategy into international market and supply chain management model are worth studying. Although being in a red ocean market, it can still continuously create competitive competences and competitive advantages, and therefore Hon Hai’s customers see it as an indispensable partner in business developments.
Hon Hai has different strategies in different stages, but one common ground is its deep understanding toward market trend and its resources, and makes strategic planning based on industrial life cycle, company life cycle, resources, and customer’s demands, and thus makes an optimal choice.
The success of Hon Hai demonstrated that nothing is pure luck. Through adequate strategic management, it reduced the proportion of luck to the minimum, continually utilize its resources and create sustainable competitiveness in respond to industrial conditions, and have achieved a leaping growth of avenue from billions to thousands to billions. This study is based on theoretical framework of strategic management, and investigates the strategic blueprint behind Hon Hai’s legend, and hopefully will bring forth some worthy discoveries to the industry.

Identiferoai:union.ndltd.org:TW/102NSYS5457030
Date January 2014
CreatorsMu-Kun Chiang, 江木坤
ContributorsHaung, Pei-How, 黃北豪
Source SetsNational Digital Library of Theses and Dissertations in Taiwan
Languagezh-TW
Detected LanguageEnglish
Type學位論文 ; thesis
Format169

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