Value Chain Analysis and Financial Performance of IT Industry in Taiwan
Date Issued
2007
Date
2007
Author(s)
Tseng, Wei-Lun
DOI
zh-TW
Abstract
According to his value chain concept, U.S. professor Miachael Porter further referred that a firm’s value chain does not exist alone, rather it consists in a value system which is composed of the firm and its suppliers and customers, and it is so-called “the industry value chain”. In addition, Stan Shi,the former president of Acer, also mentioned the relative concept “smiling curve”. He said the traditional OEM industry in Taiwan was a high added-value industry before, but now it becomes the lowest added-value one. Therefore, firms have to work hard toward the two side of the smiling curve, which are “intellectual property” and “Brand and Service”, to ratain their competitive advantages.
This thesis based on Miachael Porter’s value system and Stan Shi’s smiling curve is to do some financial performance analysis of IT industry in Taiwan. According to the companies basic information in TEJ database, this thesis classifies every IT industry firm to each different value chain stage, and further classifies every firm in the manufacturing stage to each industry based on the supplier-and-customer relationship. The data in this thesis is referred to the consolidated financial statement. This thesis calculates the operating performance and profitability of each value chain stage in the last five years, and observes the difference in financial performance in each value chain stage and the trend of the change in value so that it could be the information for the investors to invest in the Taiwan IT industry in the future. The conclusions of this thesis are as follows:
1. As for the scale, Taiwan IT industry mainly center on the manufacturing stage. The scale in each industry value chain stage except software industry and channel stage show a upward trend. The percentage of the scale in the manufacturing stage increases gradually while it decreases little by little in the other value chain stage.
2. As for the growth rate, the manufacturing stage is the highest among other value chain stages in Taiwan IT industry. And the semiconductor industry has the highest growth rate among other industries in the manufacturing stage.
3. As for the profitability, it shows that the “intellectual property” and “Brand and Service”stages have high profitability, and the manufacturing stage has low profitability. This also verifies the smiling curve statement. However, although software industy and channel stage also belong to the two side of the smiling curve, they have the lowest added-value in the IT industry. In the manufacturing stage, the semiconductor industry has the highest added-value while the component industry and the communication industry have the lowest one.
4. In the situation that the traditional telecommunication industy is excluded from the IT industy analysis, the smiling curve is no longer “smiling”. It shows that the design stage in the left side has the highest added-value, the manufacturing stage is the second, and the communication industry has the lowest added-value.
Subjects
價值鏈
電子產業
微笑曲線
value chain
IT industry
smiling curve
Type
other
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