| Summary: | 碩士 === 臺灣大學 === 會計與管理決策組 === 96 === FR-4 copper clad laminate (CCL) is the most important raw material of printed circuit board (PCB). However, similar to many electronics in Taiwan, the CCL industry reaches maturity, facing violent competition from over supply. Therefore, a study of the strategy on competition and growth of the firms constitutes the thesis.
Firstly, we analyze the industry structure to see how the industry structure to drive the competitive behavior by use of Michael Porter’s Five Forces of competition framework. We may conclude the value drivers of competition advantage and key success factors via such an analysis. Secondly, the study is also expected to contribute to the competition strategy of CCL suppliers with practical and theoretical suggestions.
The summary of this study is as the following,
1. The competitive pressure is mainly resulted from so called “vertical competition”：the bargaining powers of supplies and buyers. However the bargaining power is balanced due to the cyclic feature of the PCB industry. So the CCL makers have to set up the competitive advantage through the low cost and /or the differentiation strategy.
2. Cost based advantage is the most superior strategy on competition of CCL industry.. It should be noted that cost advantage is not price competition. Through the analysis and the rival’s performance based on ROIC, we found the economics of scale, low-cost inputs and low overheads are the key cost drivers for CCL industry in Taiwan.
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