Leveraging Successful Brand into A Different Industry–A Case Study of L Company

• Main Authors: ChiaYung Bai, 白嘉勇
• Other Authors: T. C. Hsueh
• Format: Others
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/58qr4j

碩士 === 長庚大學 === 管理學院碩士學位學程在職專班經營管理組 === 103 === Abstract Company L was established in 1962 and has been in the market of cooling towers for over 50 years in Asia. The company has established its own brand, and posses a relatively high market share in Taiwan and China. However, for the purpose of long term development planning, the company has decided to step into the electrical motors business as the potential driver for growth in the next 50 years. Besides satisfying the company’s own needs for the cooling tower industry, the produced electrical motors can also be sold to other industries. However, the electrical motor industry and the cooling tower industry have different characteristics in many areas, including the fluctuation of raw material pricing, training and maintenance of suppliers, R&;D technical talents and knowledge, and market development and control…etc. Even though Company L has been operating its electrical motor business for more than 10 years, business is still in a state of loss. This study performs SWOT analysis to the operation of the company and utilizes the advantages of vertical integration in order to reduce hopefully its deficit with the following suggestions: 1. Source from two or more raw material suppliers to reduce the risk of running out of inventory, 2. Design, research and develop models that share generic raw materials as the primary product of sale to reduce inventory pressure, 3. Integrate the sales network of the group, increase scale of the sales and reduce the difference in the demand between busy and slow seasons, 4. Cultivate talents and core technologies through cooperation with the industry, government and academic communitiesy, 5. Provide competitive salary and open channel in promotion to attract and preserve core talents. At the same time offer compensations to encourage talents to pursue further education and improve product innovation and R&;D capability, 6. Comply with the persistence of product quality and excellent service of successful brand names.