Business Model Analysis of Taiwan’s Machine Tool Industry - A Case Study of J Co.

• Main Authors: Chen Hsi Chung, 陳錫忠
• Other Authors: 洪堯勳
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/xncdzf

碩士 === 東海大學 === 高階經營管理碩士在職專班 === 102 === With global economic growth and the changes in the internal and external environment, Taiwan Machinery Industry has lost the cost advantage which leads to a lower profit margin. Most of machine tool builders in Europe, America and Japan tend toward the business approach of vertical integration, while almost every Taiwan machine tool manufacturer is buying inputs from other specialized suppliers in view of risk taking abilities. Taiwanese machine tool industry has demonstrated its strength and become the envy of the world. In the midst of global competition, how to maintain the core competency and competitive advantage and move toward high value-added sectors and services has been an issue requiring attention by machine tool builders in Taiwan. The SWOT process, Porter Five Forces Analysis and Value Chain were employed to identify and analyze the case’s internal strengths and weaknesses, the opportunities and threats presented by the environment, and operation modes chosen at different times and different resource strategies. The competitive position of the machine tool industry in the world and future prospects of J Company were also examined to help J Company improve competitiveness. The role of J Company is of great interest, as it represents a microcosm of growth process of Taiwanese machine tool industry. Taiwanese machine tool industry is a cluster of medium and small businesses to form a center-satellite plant system that combines specialized and flexible integrated suppliers. In the value chain, better service and responsiveness to market needs for new products through R&D and process technologies will help the industry maintain competitiveness. J Company began as a repair business. Its growth of new machine is driven by customer service. Thus, to spur R&D and manufacturing operations through service enhancement will be beneficial to the development of the industry. Both ends of the value chain command higher values added to the product based on the Concept of Smile Curve. A company should focus on global marketing of brand-name products and services, invest in R&D, and create value by incorporating service into the supply chain.