A Study on the China Market Entrance Strategies and Globalization Opportunities for Taiwan OEM Auto Parts Industry
Date Issued
2005
Date
2005
Author(s)
Lin, Wen-Chi
DOI
zh-TW
Abstract
Because automotive market in Taiwan is small, Taiwanese automotive suppliers have difficulty in developing into and competing with global first tier suppliers. In the past decade, the worldwide automotive market has become saturated and has stopped growing while the Chinese automotive industry has been booming. With the appeal of a growing market and low production costs, OEM auto makers and first tier auto suppliers have been entering China one after another, establishing their production sites in China. In past few years, Taiwanese automotive suppliers have also entered overseas markets to seek for new growth opportunities, and China is one of the major destinations. Taiwan, with the advantage of its geographical location, language and cultural background, now has the golden opportunity to enter the global supply chain, via the China market. How to efficiently utilize these advantages and the China market will be a very important issue for the future development of the Taiwanese automotive industry.
The following issues will be discussed at this study:
1. The development of the supply chain of auto makers and first tier suppliers in the future.
2. The strategic implication of the China market for Taiwanese automotive suppliers.
3. The China market entrance strategy for Taiwanese automotive suppliers.
4. The opportunities and challenges facing Taiwanese automotive suppliers in China.
This study discusses the current status and future development of auto supply chain between auto maker and first tier suppliers, their current status in China, the development of Taiwan automotive industry in Taiwan and China, and success of Taiwan suppliers in entering the China market. The conclusions are as follows:
1. China market has already become an important interface for Taiwan automotive suppliers to enter global supply chain and to compete with other auto parts suppliers.
2. Joint venture and cooperation with other first tier suppliers will be a better entrance strategy rather than FDI(Foreign direct investment).
3. Taiwan auto makers, top 10 China auto makers and other first tier suppliers are the most favorable partners for joint venture when entering China.
4. Broadening the product line is a strategy to strength competitive advantage.
Subjects
汽車產業
交易成本
Automotive industry
Transaction cost
China entrance strategy
SDGs
Type
thesis
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