| Summary: | 碩士 === 東海大學 === 會計學系 === 107 === The machinery industry occupies a significant position in Taiwan's history of economic development timeline, which have been the third industry to achieve the output value of trillion dollars. Moreover, it is also one of the innovative industries promoted by the government actively in recent years. In the machinery industry, the tool machine is not only the fundamental of industrial mechanics but also equivalent in degree of autonomy on industry across country. With the standardization and specialization in the center-satellite system, tool machine manufacturers which composed of small and medium enterprise (SME) in Taiwan are able to create economies scale over themselves areas of expertise improving the overall competitiveness against foreign peer firms. However, as the center-satellite system, it is straightforward to obtain raw materials that these firms produce substitute goods as similar to another, which brings about high similarity for goods, low entry threshold and intense competition.
The objective firm in this case study is a manufacturer of machine tool component, which obtained high efficiency and low-cost benefits from the center-satellite system. However, as a SME, it was still unable to follow the footsteps of market leader in terms of technology and resources. Hence, it targeted customers with lower quality requirements within the small-scale market. Although the quality of the goods provided by this firm is insufficient than that of the market leader, it is not an issue for this firm to meet their customer's requirements on quality.
As well as selling goods in lower price to customers, the value on good produced from this firm is higher than market leader for providing the free manuals about how to use for its customers. Therefore, in order to increase the credibility of the value and gain recognition on good through the customer's experience, it allows customers to request samples with a view to receiving recognition from their experience. That is, this firm introduced the trade-on transaction to cut down its price, which is to increase the value on good through the service within the acceptable range of quality from customer.
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