A Key Success Factors Analysis of the Investment Banking Industry

• Main Authors: Sung-Hui Chuang, 莊松暉
• Other Authors: Ming-Je Tang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/42455620129554284476

碩士 === 國立臺灣大學 === 國際企業學研究所 === 92 === Thesis Abstract Graduate Institute of International Business National Taiwan University Name: Chuang, Sung-Hui Month/Year: July, 2004 Advisor: Dr. Tang, Ming-Jer A Key Success Factors Analysis of the Investment Banking Industry The financial industries play an essential role in economic growth. As economic growth leads to the need for raising capital and with financial deregulation and globalization, the cost advantage and efficiency of capital raising through capital markets are superior to lending through financial institutions. Direct finance has become increasingly more important than indirect finance. Investment banks, major players in the direct finance world, serve as intermediaries between the supplies and needs of capital. Because of longer development history, banks in the US and Europe have broader product lines, superior technical skills and more complicated distributing networks than any other banks in the world. In Taiwan, investment banking activities belong to different institutions due to regulations and thus, officially, there have been no investment banking industry or banks. The purpose of this thesis is to conduct an exploratory study based on in-depth case studies on investment banks abroad and in Taiwan. We took Goldman Sachs in the US, Macquarie Bank in Australia and China Development Industrial Bank in Taiwan as our cases. Through careful analysis and inter-case comparison, we found that how the famous investment banks built and leveraged their core competencies, and key successful factors in this industry. We also found the capabilities and resources that banks of Taiwan may need. Based on thorough study through these cases, we found that major key successful factors of this industry are reputation and status, relational distributing networks and financial technical skills. And these factors constitute high level entry barriers. Successful banks usually have to build core competencies like capability to managing complicated relationship networks, research capability of industries and the capital market and financial technical skills. Famous larger banks usually focus on large enterprises, adopt multi product line and globalization strategies. Smaller or niche banks usually focus medium or small enterprises, develop focused products and services, and localized strategies. Niche banks usually well leverage their core competencies abroad and utilize strategy alliance to achieve the goal of internationalization. It is difficult for banks in Taiwan to develop cross-border investment banks due to lack of necessary core competencies and high entry barriers to this industry. In addition to local market, banks in Taiwan should first focus on the Great China Economic Area and take advantage of Taiwan manufacturers as customer bases in order to enter this market quickly. For unfamiliar businesses, banks in Taiwan should find opportunities to cooperate with famous banks and become one part of global vale chain.