Competitiveness Analysis of Taiwan's and South Korea's Electronics Industry ~ Case of Smart Phone Industry
Date Issued
2012
Date
2012
Author(s)
Chang, Ya-Fang
Abstract
After being hit by the two energy crises in 1970s, Taiwan’s industry structure has gradually changed from labor-intensive light industry to technical-oriented electronics industry, which not only plays an important role of driving economic growth, but also a key indicator of economic boom. During the process of industry transformation, it is inventible to encounter competitions from other countries. For Taiwan’s electronics industry, the greatest threat is from South Korea of Northeast Asia. The industry structures of Taiwan and South Korea are very similar. Both are representative of developing countries. Therefore, South Korea has always been Taiwan’s major competitor in every aspect, particularly, in electronics industry. Governments of the two countries adopt very different approaches to develop their electronics industries.
In response to the rapid progress of electronic communication equipment, the demands for mobile phones have also changed from basic voice communication to Internet browsing and entertainment functions. Smartphone is therefore emerging rapidly under this trend. Worldwide mobile phone market has reached USD 102.5 billion in 2005, surpassing the USD 101.8 billion of desktop PC market for the first time. Mobile phone has replaced personal computer, becoming the largest volume of the hi-tech product. With more than 1 billion units of shipment and USD 100 billion of market scale, the huge business opportunity has made it the key driving force of the global technology industries.
The aim of this study is to investigate the core competitiveness of Taiwan’s and South Korea’s electronics industries, and explore future development directions for the electronics industry in Taiwan. The research covers the current market status of the electronics industries in Taiwan and South Korea, and then adopts SCP analysis, Five Forces analysis, and SWOT analysis to examine the development of Taiwan’s smart phone industry. Based on the study, it is suggested that local smart phone companies should aggressively adapt business strategies responding to market status, analyze value chain activities for differentiation, make strategic alliance to develop key components, and adopt diversifying strategy for product launch.
Subjects
Electronics Industry in Taiwan
Smart Phone
SCP Analysis
Five Forces Analysis
SWOT Analysis
SDGs
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-101-P97323015-1.pdf
Size
23.54 KB
Format
Adobe PDF
Checksum
(MD5):a0f4e1b3de1aeb36bafc2bc7d14eb173