A study on the business model of component manufacturers\'\' diversification – A case of A Company in Zinc and Aluminum Die Casting Industry

• Main Authors: Ching-Sung Chen, 陳景崧
• Other Authors: 陳家彬
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/cgi-bin/gs32/gsweb.cgi/login?o=dnclcdr&s=id=%22107NCHU5457076%22.&searchmode=basic

碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 107 === This dissertation takes one of the traditional industries to be a case study, which is the component manufacturing industry, in order to investigate strategy of diversification business model and discussed advantages and disadvantages of concentric and horizontal diversification. The thesis is based on concentric and horizontal diversification to analysis the strengths and weaknesses of A manufacturing in zinc and aluminium die-casting industry. The research method of this study is to interview five of business leaders of related industries are to assist the authenticity of the research results. Also face on the problem of second generation succession and the characteristics of industry are extended to the business model, business strategy and risk assessment. In terms of invest stratge, the success rate of concentric diversification is higher than horizontal diversification. Firstly, manufacture utilizes the existing equipment, technology and talents which are the same source in the factory. Seconly, the investment capital expenditure can be lower than builing a new line. The last, it can reduce the risk in expanding products categories and entering new market. Risk avoidance and resource sharing are the benefits of concentric diversification. Compared with concentric diversification business model, the horizontal diversification is totally opposite direction. One of reason is all equipment, technology and talent must be redesigned, allocated and trained in buling a new producting line and it is the higher uncertainties situation. Another reason the market is concentrated in the same area, which lost the opportunities into the new market. Secondly, greater investment funds need to be devotion. On the other hand, it is an effective method to expand the operation of different industries by merger and acquisition if there were abundant funds than to start a new enterprise. Therefore, it is necessary to carefully plan to invest in capital, technology and talent under favorable conditions, which avoid being dragged down by the newly created extra-industry investment, if it does not expand, there will be a close and critical threat to the survival of the industry. This dissertation aims to apply a model called PDDRO cycle to control new product development cycle in development department of A component manufacture which is own thiry years operation experiences. By applying the model, this reaserch aslo summarize six key projects which are Quality、Delivery、Price、Technology、 Management、Equipment in production process operation management process. In conclusion, this study also explains in the article and provides references for future second generations of enterprise and researchers.