Development Strategy of the Fastener Industry in Taiwan

Autor: Cheng, Chih-Chien, 鄭志堅
Rok vydání: 2013
Druh dokumentu: 學位論文 ; thesis
Popis: 101
Taiwan was well known as a kingdom of fasteners with the most export volume in the world, but mainland China has been replacing Taiwan’s position after the Taiwanese manufacturers and supply chains set up factories in mainland China and brought excellent technology with huge production capacity there. Due to limited resources in Taiwan, the majority of government and private funds are investing in hi-tech industries. Due to the wage differences, most talented people are attracted to work in the high-tech industry, such that relatively speaking traditional industries in hard and dirty environments have been especially facing operation difficulties with manpower shortage, not to mention any long-term development and plans for future. Actually, this problem has become the worst impact on the screw industry. Facing the strict competition against cheap labor cost of mainland China/ Southeast Asia and the international economic downturn, this study is to research the differentiation strategy for traditional fastener industries in Taiwan by production strategy model of Ward and Duray (2000) with empirical findings. The differentiation strategies do make the new fastener companies competitive with excellent performance in sales and gross margin. The differentiation strategies also help them avoid obvious impact from international economy downturn. However, it should still need to pay attention to the impact of the product life cycle and continuous development of new product lines. In addition, facing the high unit price enjoyed by Japanese and German fasteners, Taiwan’s fasteners have a long way to achieve their high added-value target, but adjustments in the overall policy and supply chain industries must be done immediately.
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