The Competitive and TransformingStrategies for Taiwan’s Chemical Fiber Industry －A study of Formosa Chemicals & Fiber Corporation Rayon Division

• Main Authors: Chen Han-Hui, 陳翰輝
• Other Authors: Tsai Jeng-Yan
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/40877298413831256591

碩士 === 淡江大學 === 國際貿易學系碩士在職專班 === 92 === In recent years, the development of science and technology has brought rapid changes in the external environment, resulting in continual impact on different industries. Especially traditional industries, they have to face many difficulties in their businesses, such as continuously increased cost, and more and more industries relocating abroad. Therefore, traditional industries have reached a critical point where they have to transform themselves in order to survive. Determining how to carry out transformation themselves and what the proper policies are that should be taken are important problems for traditional industries at present. The chemical fiber industry is important to people’s livelihood. As natural cotton is limited in planting area, and its production is also affected by recent environment pollution and greenhouse effect. Therefore, the chemical fiber industry will become more and more important as people’s living standards improve and functional requirements for fibers become more different and diversified. In the chemical fiber industry system, Rayon Fiber needs high investment, high technology and has a high threshold. In Taiwan, it is only produced by Formosa Chemicals & Fiber Corp. This company even monopolizes Rayon Fiber production in the world. However, in recent years it has to face low cost competition from Southeast Asia and increased cost for wood pulp material. At present, the company is under the pressure of high operation costs and threatened by price competition in the same industries of many Southeast Asian countries. This research will focus on how to take proper measures to adjust to a deteriorated external environment and cater to enterprise transformation and adopt business strategies to ensure enterprises’ competitive advantages as they face rapid decline in the domestic textile industry and the pressure of international competition. This research will make use of professor Porter’s five-forces analysis, value chain theory analysis and SWOT analysis, and combine these analyses with professional opinions and information obtained from discussion and interviews. Thereby, presenting a conclusion about where the advantages of the rayon fiber industry are, and make suggestions on transformation and competition strategies to cater to external environment change. These are divided into (1) Product differentiation strategy; (2) Excellent Brand strategy; (3) Low cost strategy; and (4) Reinforcing sale strategy. The research is carried out with the hope that Taiwan’s rayon fiber industry will successfully carry out transformation and continue to develop forever.