Competitive Strategies for the Internet Cafe industry in Taiwan

• Main Authors: Linda Lin, 林麗玲
• Other Authors: 吳元功
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/42475376633951388320

碩士 === 實踐大學 === 企業管理研究所 === 89 === Since the Internet was available for business use in 1994, it had a revolutionary influence on all industrial circles. It also resulted in the booming of Internet business start-ups. While they swarmed zealously but got no profits in return, the owners began to care and concern themselves about the problems of their management strategies, the essence of profit, the operating performance, and the consumer behaviors. Gradually, they came up with a new idea, the Internet Cafe businesses, which combined real and virtual services. Internet Cafe businesses are hot right now and many people are focusing their attention on them. Consequently, people have flocked and invested in Internet Cafes based on the assumption that Internet Cafes have a promising future. From the end of 1999 to the end of June 2001, there were more than 4000 Internet cafes opened in Taiwan, and the number is still rising. Facing this vigorous and flourishing market, the owners also suffer from keen competition at this time. The Internet cafe industry encompasses both the Internet and customer services, and it relies highly on Internet technology. Besides, the environment will change in the twinkling of an eye. So the owners face the harsh and stern challenges, such as unclear regulations, pricing wars, business integration and orientation. What competitive strategies do they develop to survive in this keen competition? How will they develop their industry? What are the trends? The owners, customers and the public are all eager to know the answers to these questions. This research is based on industrial analysis, interviews and questionnaires. By symposium, data compiling and statistical analysis, we get the results of the current situation, the environment, the competitive advantages and the competitive strategy of the Internet cafe industry. 1. If we differentiate the customers by their consuming purposes, they can be categorized into three groups; namely, information & social group, on-line game group, and recreation group. 2. We analyze and sort out consuming factors that influence customers'''' choices. We found that information & social groups care more about information services, long-term services and meal services. On-line game groups care more about core services and game services. Recreation groups care more about core services, premises services, information services, game services, long-term services, meal services, and value-added services. 3. When ADSL (Asymmetric Digital Subscriber Line) services become popular in most families, the deciding factor customers will go back to Internet Cafes is whether the game services are good or not. 4. There are three types of Internet Cafes on the market: Basic type, High-speed connection type and High-quality combination. 5. Now Internet Cafes are in fierce competition, the competitive strategy should focus on differentiating the customers'''' needs. We suggest that they should develop into three types: recrestion speciality, On-line game speciality, and Total superiority.