The Study on Relationship between Industry Cluster and Corporate Strategy of Connector Industry in Taiwan

碩士 === 中原大學 === 企業管理研究所 === 95 === Abstract Taiwan has been playing a very important role in worldwide market since blooming of electronic industries. Connector is one of the key components in electronic industry, which creates US$400 to 600 billion of sales revenue for Taiwan every year, that is, 4...

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Bibliographic Details
Main Authors: Huan-Kuei Chiu, 邱煥奎
Other Authors: Ghi-Feng Yen
Format: Others
Language:zh-TW
Published: 2007
Online Access:http://ndltd.ncl.edu.tw/handle/85506829655553794234
Description
Summary:碩士 === 中原大學 === 企業管理研究所 === 95 === Abstract Taiwan has been playing a very important role in worldwide market since blooming of electronic industries. Connector is one of the key components in electronic industry, which creates US$400 to 600 billion of sales revenue for Taiwan every year, that is, 40-60% of global market share, it shows the importance of connectors. There are totally 213 connector manufacturers in Taiwan. However the phenomenon of industry cluster is very significant, for 188 of 213 (88.3%) manufacturers are located in 3 cities in northern Taiwan, and 122 of 188 (57.3%) manufacturers locate in Taipei province. Therefore, this study intends to explore the relationship between industry cluster and corporate strategy of connector manufacturers in Taiwan. This study focuses on the connector industry to explore the: 1. cluster phenomenon in Taiwan; 2. cluster phenomenon in China; 3. difference of clusters between Taiwan and China; 4. difference and similarity of clusters between Taiwanese enterprises and foreign-invested enterprises; and 5. the relationship between industry cluster and corporate strategy owing to the influences from industry as well as environment. This study adopts the qualitative research method and selects 14 representative companies in Taiwan according to 2 major principles (OTC/ IPO, Taiwan/ foreign venture). The researcher develops and uses semi-structured questionnaire to do the depth interview with top management in each company. The primary information was collected from these interviews, and the secondary information was collected via industry associations. The researcher then analyzes the collective information and compares the differences and similarities among these connector manufacturers. The research findings are as follows: 1. Industrial cluster: The cluster in Taiwan has been significant, but it becomes even more significant after transferring into China. The production scales of all manufacturers are expanded, and the cluster of supply chain is also more significant. Meanwhile, not only increasing on cluster of supply chain or the type of “supplier cluster” (Taiwan capital increases average by 10%, and foreign venture by 30%), but also increasing on the proportion of types of “competitor cluster” and “customer cluster,” and it shows the most significant on “customer cluster” (average 37.4% of Taiwan capital and 42.5% of foreign venture) whether it is Taiwan capital or foreign venture. 2. Corporate strategy: It can be divided into 4 kinds of strategy: 1). corporate merge or alliance strategy– to enlarge corporate scale and enhance effectiveness; 2). cost strategy – to cut down raw material price with large quantity and integrated orders, and to lower production cost with economy scale; 3. service quality strategy- to approach customers or to stay near customer cluster, and to provide prompt and rapid service to grasp more orders; and 4) differentiation strategy– to provide particular technology, process improvement, and “total solution” to customers. By means of these various kinds of strategy, corporate can strengthen its competitive advantages and increase the profit margin. From “cost down,” “utilizing the strength of industry cluster,” “enlarging production scale,” “enforcing technology,” “cooperating, allying and merging in the industrial chain,” by transferring to China, Taiwanese corporate thus can compete with foreign multi-national companies and keep the connector business continue to grow in the world market.