The unrelated diversification strategy in Taiwan’s Textile industry
Date Issued
2015
Date
2015
Author(s)
Chueh, Ta-Wein
Abstract
Since textile industry in Taiwan has shifted labor power to other countries in recent years, the cost of labor has increased and we are facing Chinese market and other challenges, many companies have considered restructuring in order to increase their revenue. This research aims to analyze some unrelated diversification strategies in Taiwan’s textile industry. The research method exploits data from China Credit Information Service, LTD. (CCIS), and uses secondary data to do case study analysis. It adopts three textile companies which are dabble in unrelated diversification: The Far Eastern Group, The Ruentex Financial Group and Tainan Spinning Corporation. The results show that the textile industry is developing in accordance with Taiwan’s economic trend. The textile industry tend to invest in real estate, converting land into a residential area generates greater income. In addition, investing in the distribution industry attracts more people and money. Besides, it does not affect prosperity and through customer relationship management, it attracts customers for repeat business. Consequently, these three companies all seem to have obtained a huge benefit from investment in real estate and the distribution industry. In addition, investing in the financial industry brings costs down as it reduces costs due to commissions and lowers business risk. Investing in the medical and education industry also promotes the industry’s business image because these two are essential to public welfare. Keywords：Textile industry,unrelated diversification,investment, The Far Eastern Group,The Ruentex Financial Group,Tainan Spinning Corporation
Subjects
Textile industry
unrelated diversification
investment
The Far Eastern Group
The Ruentex Financial Group
Tainan Spinning Corporation
Type
thesis