The Analysis of Business Strategy for Electronic Grade Glass Fiber Industry-A Case Study for The Foreign Subsidiary in Taiwan
Date Issued
2006
Date
2006
Author(s)
Chern, Bih-Cherng
DOI
zh-TW
Abstract
The electronic grade glass fiber is one of the major upstream raw materials of PCB (Printed Circuit Board) industry. Since 1988, foreign companies started to build their glass fiber production subsidiaries in Taiwan in succession either by wholly own or joint investments. Following the economic recession in 2001, the over supply of global PCB market forced the PCB makers to switch their production bases from their local area to the world factory, the Mainland China. It facilitated the relocation of PCB and its upstream industries. Currently, the glass fiber yarn makers in Mainland China have already became the main competitors of the makers in Taiwan.
Along with the rise of electronic glass fiber business in Mainland China, Taiwan glass fiber makers gradually lost their previous competitive advantages. In addition, the difference of historical background and competitive advantage of foreign subsidiary was evident as compared to those of local companies in Taiwan. The foreign subsidiary received outstanding resource supports from its parent company, yet its business scope was limited when faced fierce business competition. From the aspect of business strategy planning, it will be a crucial subject for managers at foreign subsidiary to regain the competitive advantage of their companies in Taiwan.
Based on the case study, the corporation strategy of the foreign subsidiary in glass fiber industry was analyzed on this thesis. Through the external analysis of industrial environment, the key success factors (KSF) of electronic glass fiber industry and the external opportunity/threat of the case company were identified. In addition, linking KSF with its resource and capability, the key strength/weakness of the company were derived. By cross-examining the external opportunity/threat and internal key strength/weakness of the case company, the strategy matrix was developed. Finally, the suggestions of feasible strategies, in terms of the aspects of customer, products and integration with parent company, were proposed on this thesis.
Subjects
電子級玻璃纖維紗
經營策略分析
Electronic Grade Glass Fiber Industry
Business Strategy
Type
other
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