An Analysis on Business Strategy of Technology Service Provider---A Case Study on Topco Scientific Corp.
Date Issued
2011
Date
2011
Author(s)
Weng, Pi-Yang
Abstract
Semiconductor and TFT-LCD are two major high-tech industries in Taiwan. Both have the same characteristics, which are capital and technology-intensive industries. In the early stage of the industry development, the automatic production lines were set up quickly to produce the major market products by transferring the production technologies from other countries.
The suppliers of automatic production equipments come from a limited number of countries. For example, the semiconductor production technology mainly comes from USA and Japan. Almost all TFT-LCD production technologies come from Japan. In the supply chain, the technical service provider (also known as Import Agent) with marketing and after-sale service as his key value activities plays an important role during the industry development. However, the sales agent business may have the challenge on vertical integration coordinated by the equipment supplier while the industry competition situation changes. Therefore, the technical service provider has to come up with a proper business strategy to increase the corporate value and drive the corporate growth.
Related diversification is one of the key business strategies for corporate growth. The motivations to execute this strategy basically consist of the growth on revenue and the risk reduction on business investment. Another motivation is that the service provider with cost leadership is required to work with the equipment suppliers for the customer value creation.
Key words: Industry Supply Chain、Related Diversification、Cost Leadership
Subjects
Industry supply chain
Related diversification
Cost leadership
Type
thesis
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