The Competitive Strategies of Securities Investment Trust Industry in Taiwan

The purpose of this thesis is to examine the competition environment of the securities investment trust industry in Taiwan, with analytical techniques such as value chain, five forces, key success factors and diamond models. We have collected secondary information and conducted interviews with senior managers of the industry to accomplish the thesis.ith value chain model, we have identified four value activities and they are: (1) understanding the market demands; (2) formation of fund products; (3) marketing fund products; and (4) customer services. These four value activities are established on the corporation marketing activities, asset management activities and customer services. Infrastructure, human resources management activities, research and development activities, internal control, internal audit and risk management have become the supporting activities of the securities investment trust industry.The results of five forces analysis on the industry are as follow: (1) the level of entrance barriers is medium, (2) competition within the industry is fierce; (3) the threats of substitution are low; (4) buyers’ bargaining powers are weak; and (5) suppliers have medium bargaining powers.The key success factors of the securities investment trust industry are: (1) overall performance of subordinate funds; (2) great enterprise branding and reputation; (3) integrated marketing channel; and (4) complete product lines and comprehensive customer services.ur analysis of the industry using diamond model shows that the industry is equipped with a well-developed infrastructure of information communication technology, supported by sufficient amount of competent professionals from both financial and IT industries, under a rising investment atmosphere, and strongly linked with other supporting industries. In recent days, the aggregative trends of the industry indicate a continual growth trend and greater competition among the industry. The most important of all is to reveal strong brand image of the group to all investors.