Competitive Strategy of the Taiwanese Home Appliances Manufacturers under the ECFA between Taiwan and China
Autor: | Chang-ying Chuang, 莊彰銀 |
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Rok vydání: | 2010 |
Druh dokumentu: | 學位論文 ; thesis |
Popis: | 98 In the latest decade, the economy and trade has been globalized, thus, lots of countries had signed the FTA and built the Free Trade Zone with their neighbor countries or their trade partners in order to keep continuous economic growth in their domestic market, to increase the competitive- ness of their industries and expand the market scale as well under the WTO’s regulation. Taiwan had joined the WTO in 2002 and should have the right to sign FTA with all members of WTO, but actually Taiwan couldn’t do it because of the interference and obstruction came from China. As the result of this condition has made Taiwan be isolated from its relative area economy organizations. The economy and trade had been growing rapidly in past ten years between Taiwan and China. China has been the No. 1 trade export country of Taiwan now. China also has been included in the “ASEAN” organized by the South East Asia Countries and the other countries such as Japan, Korea, India, New Zealand and Australia will be included in this “ASEAN” too in the near future except Taiwan. That will cause unfair trade competition if we want to export products to China and other Asian countries and will make a serious impact for Taiwan’s economy. China is still an enemy of Taiwan in political side, but he also plays the key role in Asian economy organizations. If Taiwan wants to join the relative Asian economy organizations, Taiwan needs to sign the relative agreement with China firstly and then has the chance to join the others. Therefore, the first research of this thesis will try to find why Taiwan has to sign the “ECFA” with China instead of FTA and what are the impacts, influences, advantages and disadvantages to Taiwan all industries if Taiwan sign the agreement. Taiwan Home Appliances Industry is a Taiwan basic industry since 1930 and is always under government’s p protection. Nearly all the Home Appliance makers focused its sales and operation in Taiwan domestic market. Since Taiwan is a small market, most of Home Appliances companies are medium or small operation with less competitiveness in comparison with Japanese, Korean and Chinese makers. After Taiwan signing the “ECFA” with China, Taiwan needs to reduce the import duty and open the market to China, in this case, China cheaper Home Appliances may enter into Taiwan market and that will cause a serious price competition and will lead to Taiwan existing Home Appliances companies lose the market even getting loss to close. The second research of this thesis will analyze the outside and inside of the industry competitive environment by the theory of Poter “Five Forces Analysis” and “Competitive Advantage Strategy” and find the competitive advantages of Taiwan Home Appliances Industry and find the best competitive strategy. Furthermore, we will take a representative Home Appliances Company as a case study, by analyzing its internal and external advantages and disadvantages in “SWOT” theory to find its countermeasures to face and overcome the impacts and competition coming from Chinese makers after signing “ECFA” agreement. The conclusions of this research are; we found the advantages of Taiwan Home Appliances Industry having best manufacturing technology, flexible production plan and innovation design on product functions. The best competitive strategy is to adopt the “Differentiation and Focus Strategy”. To make the market segment by differentiation products and innovation design products functions, to get rid of the price competition by customized production, to get the market sharing by multi-brand strategy and control the sales channels, to increase the competitiveness of company by merging some Home Appliances Companies, to expand the export market by the strategy alliance with Chinese makers or other foreign big Home Appliances companies. |
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