The Innovative Business Model of the Bicycle Industry of Taiwan under Free-Trade Zone：A Case Study of E Company

• Main Authors: YU WEN- HSIANG, 游文相
• Other Authors: CHANG KUO-HSIUNG
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/x32q2w

碩士 === 東海大學 === 高階經營管理碩士在職專班 === 103 === The purpose of this study is to investigate Taiwan’s bicycle industry supply chain innovation business model, and to have a deeper understanding of the role enterprise co-evolution plays under Taiwan’s Free Trade Zone. Taiwan’s key bicycle components are mostly controlled by foreign suppliers (such as transmissions produced by Japan’s component supplier S). Due to geographical location plus shipping time, delivery of components by foreign manufacturers remains to be the main hurdle in Taiwan’s bicycle supply chain; hence, bicycle manufacturers must have enough inventories of components on hand to be able to accept orders from foreign buyers, thereby increasing the risk of slow moving stock. Under today's traditional business model, when the bicycle industry purchases key components, it is faced with the problems of long delivery time by foreign manufacturers, the risk of having too much slow moving stock, the inability to meet the demands of buyers around the world, etc. Especially after the elimination of tariff barriers on both sides by the ECFA trade agreement, the division of labor within the cross strait region is bound to re-shuffle because of industrial pattern changes caused by regional economic integration while Europe and the U.S. will no longer be the core consumer markets. This study uses the case study method to look into how the case company carried out an innovative collaborative business model to meet global market competition and regional economic restructuring. Through collaboration and co-evolution between the supply chain component suppliers, assembly plants, and logistics providers, the “Within National Territory but Outside Customs Territory,” “store in front, factory in the rear,” and “Work in process – outsourced” mechanisms under the FTZ were utilized. This created the “facilitate bicycle industry development and logistics services support model,” optimized the “supply chain management model of bicycle industry operations,” and increased product value (profit), diversified risk, reduced operating costs, and enhanced Taiwan’s bicycle industry’s competitive advantage. Keywords: Free Trade Zone, FTZ, Co-evolution, Business Model, Supply Chain Management