Internationalization Strategies of Taiwanese Firms： The Case of the Halal Food Industry

• Main Authors: Xinyi Wong, 黄欣怡
• Other Authors: 于卓民
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/e7wbcr

碩士 === 國立政治大學 === 企業管理研究所 === 103 === Living demands and needs of Islamic market has been agreatly enhance followed by the rise of world’s population and purchasing power of Muslim. According to Malaysia Halal Industry Development Corporation, Islamicmarket, which is also known as HalalMarket has an explosive growth in the coming ten years from observation ontrading value that has created 2.2 trillion U.S. dollar by relevance products of Halal market from 2012, which Halal foods sector has accounted for 57% in a largely part. Taiwanese firms have ranked in an outstanding position among the world’s food manufacturing industry with excellent manufacturing skills and creative products. Thoughin term of depth industry experiences, Halal foods manufacturing is another knowledge to process because of its specific diet requirement that influenced byIslam religion. With the basic requirementof a Halal certification on foods and drinks product, Taiwanese firms are facing challenges as a newer to the market especially a completely unfamiliar and differences in religion and culture, either in perception or practical experiences. Thus, this studies isprimarily aimed to provide informationand suggestions of obtaining a Halal certification and the internationalize strategy for Taiwanese food manufacturing firms that planning to enter Halal market through collecting practical experiences of threeon going firms and the organization which issue Halal certification in Taiwan. Within the paper explores and discusses the motivation of Taiwan firms applying Halal certification, product line selection, adjustment process and challenges during product line adjustment, foreign country entry mode, and the cooperation with local import agency. Research findingsare content in following paragraphs. First, the drive of mostly interviewed Taiwanese firmsbegan to apply Halal certification isadvised by their foreign customers whose are from Islamic country. Moreover, marketing potential testing and product testing in Islamic market could be other motivations. Second contribution of this research is the way of product selection to be adjusted into Islamic Market. Firms tend to select product line with simple material and manufacture process to adjust in the first stage. The reason of simplify is because Islamic food products require more complicated standard of the material uses and this allows firms to have time for market testing and improvement by lowering the risk of large investment at the beginning. Following the product line adjustment is the challenges that firms facing. Most common challenges would be difficulties on finding appropriate substitute material and the communication with suppliers are always time and cost consume. On a purpose to expand consumer base and product awareness, Taiwanese firms tend to export their productsinto large Muslim proportionof population country. During the initial stage, import agency is the mostly used entry mode among these firms. By import agency, products are able to get adaptquickly into the local market with local cultural. Despite a limited cooperation at the early stage, both parties has build trust and business tacit that drive to a deeper cooperation such as co-marketing and product development which meets more local demand after a long period collaboration with local import agency. This research also states that firms have to meet the basic foods manufacturing standard before applying strict religion certification for assuring consumer health.From the product perspective, develop localize product associate to Islamic culture and image will derive a large attraction from Muslim.In conclusion, the implicationsand suggestions for expanding business into Islamic country have been discussed elaborately in the paper.