A Case Study of Taiwan Auto Industry Investment in the China Market: Yulon Motor Co

• Main Authors: Wen-Rong Tsay, 蔡文榮
• Other Authors: Po-Young Chu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/75182508055177641530

碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 94 === To catch up the global trend, of entering the open China market, and building up the overall competitiveness, all Taiwan industries have continuously invested and established factories in China in recent year. However, due to some objective as well as subjective factors, the development of Taiwan companies in the China market was not so successfully expanded as expected. The Yulon Motor Co. has been successfully investing in the China market and even been considered as a miracle between Taiwan straits. This thesis would take a case study approach to conduct the research. The content would focus on the practical experiences of Yulon Motor Co. and discuss its key success factors together with related articles and papers. Research shows, that Yulon Motor Co. is different from other business enterprises, investing huge capitals, technical skills, and human resources to quickly rush into the China market. Yulon Motor Co. has invested the market step by step and used the additional earned capitals for further investment. Its so-called “Rolling” investment strategy not only lowers the investment risk, but also makes the use of the cash flow more effective. The innovative strategy and impressive performance of Yulon Motor in the China market suggested that the investing company should construct mutual trust and complementary capabilities with local companies to create long-term benefits. Currently, all the global auto companies are focusing on the China market. Its influences and threats are getting more enormous. Consequently, it is no doubt that China market would be the main source of growing power for the future of global auto industry. How Taiwan auto companies take the opportunity to create a whole new game could refer to such practices as their strategic thinking