Blue Ocean Strategy of Taiwanese Physical Fitness Equipment Industry

• Main Authors: Li Hsiao Ju, 李筱茹
• Other Authors: 李明煌
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/32267953115327526833

碩士 === 東海大學 === 國際貿易學系 === 94 === The new business strategy, Blue Ocean Strategy, revealed by Professor W. Chan Kim and Professor Renée Mauborgne fix everybody’s eyes upon in 2005. In the past, most of the strategy theories stress on the industry structure and emphasize on the importance of a firm’s capabilities and market share which turns out to be stuck in the red ocean. Make efforts to maintain the existing competition positioning and attempt to lead the profitability in the profit diminished market. This strategy tries to remind and help enterprise create value innovation for customers through the four action framework of eliminate, reduce, raise, create. Break the dilemma of traditional competitive strategy in value-cost trade-off situation and create a new market space. Physical fitness equipment industry in Taiwan is now facing the price competition situation, and this present condition conforms to the definition of red ocean by W. Chan Kim and Renée Mauborgne. This research takes J.H.T and Joong-Chenn as the representitives of Taiwan, and discovers what the whole environment is about the industry. How does J.H.T systematically use Blue Ocean Strategy to become one of the big names successfully? How does Joong-Chenn respond to this new competition situation and adjust itself to maintain its own competitive advantage? And find out the suitable innovation strategy for the case and several suggestions for future researches. The results show that J.H.T plays a value integration role to control lower production factors and brands, tunnels through out the global logistic system and thus reach cost down and differentiation at the same time. Thus, J.H.T can grasp the opportunity of emerging market, and make foresightedness plan in accordance to the whole world demand change in the future. If Joong-Chenn tries to follow the pattern of J.H.T, it must make efforts on the timing of entry, the control ability of key components, key techniques and the differentiation of products to meet customers’ needs. The business-level strategy operates with value innovation and develops toward “Integrating Cost Leadership and Differential Strategy.” If Joong-Chenn wants to create another blue ocean, the first step is to build the steady foundation and accumulate enough resources and capabilities. Once Joong-Chenn discovered the blue ocean opportunity, it has the ability to put to the implementation. Otherwise, Joong-Chenn would unable fully achieve differentiation and low cost simultaneously, even easily stuck in the middle risk by its present condition.