Business strategy analysis for PCB industry：Under the recent operating environment in the areas of Taiwan & China

• Main Authors: ChunChin Hsieh, 謝春進
• Other Authors: Kuo,Wen-Chung
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/08966786125193607584

碩士 === 元智大學 === 管理研究所 === 92 === PCB industry used to be one of the most profitable industries. However it recently became a highly competitive market, because most of the major PCB manufacturers in Taiwan in the past few years have largely expanded production capacities for home plants. Furthermore, they built new plants in China in hope to take the advantages of low labor cost and large production capacity. These initiatives in PCB industry have consequently resulted in over-supply within the market, and low profit margin for manufacturers. The purpose of this research focuses mainly on the business strategy analysis for this industry going forward. Instead of endless pricing competition, manufacturers in Taiwan and China can jointly organize a cooperative network to strategically promote the worldwide business. This research methodologically applies case studies on seven major PCB makers in Taiwan. Various business strategies implemented by individual companies indeed significantly affect their financial performance. With this finding, this research accordingly raises the following strategy suggestions to PCB manufacturers: 1. The PCB production is a mature industry in Taiwan; distinctive market positioning, core competence, and products of good quality are tools to create profitability in the current and future market. 2. For the best utilization of R&D and capital expenditure, PCB industry can benefit from strategy alliance and merger. 3. Product diversification and niche markets development, such as flexible boards for HDI, IC, and Substrate products, are important in gaining higher profit. 4. To organize a cooperative supply system in order to develop the worldwide market; ideally with trading affairs and product research in Taiwan, and manufacturing in China. 5. Choose the right entry mode in different areas with thoughtful consideration on taxation and legal environments. From the view point of economy promotion, this research also suggests the government take aggressive steps to remove current business restrictions and obstructions between Taiwan and China, at the same time to review and declare clear industry policy, and provide more incentive programs to investors.