| Summary: | 碩士 === 銘傳大學 === 管理學院高階經理碩士學程 === 96 === Local banks in Taiwan have managed to enter China’s market in view of declining profits caused by malicious competition among the homogenous banks. However, political tensions exerted by cross straight governments have turned entry problem complicated. More than that, competition from both China’s banks and international banks has got banks in Taiwan facing a difficult decision with regard to the choice of an entry mode. With it in mind, the thesis aims to analyze the determinants local banks in Taiwan conducting business in China.
Secondary data analysis and case study are employed to identify factors affect entry mode and business strategy of First Sinapac, Cathay United Bank Company, Limited, Taipei Fubon Commercial Bank Co., LTD.and Shanghai Commercial and Savings Bank respectively in terms of ownersip structure, strategy parterners etc.
According to the results generated by the case study, local banks have carried out a wide variety of strategies depending on environmental factors, industry factors, ecological site selection and core competence advantags. As far as investment strategy is concerned, Taiwanese banks have adopted three entry modes as following.
First, a wholly owned mode of entry has been utilized with branchs invested and supervised by parent banks or through overseas merger or taking advantage of CEPA for Hong Kong and Macau.
Second, by way of equity alliance, Chinese banks merger and specific ownership structure with international banks, Taiwanese banks have gained access to China market.
Third, such non equity alliaqnce as information exchange, technology transfer and business cooperation can be an alternative should bargainning
power has been major concern.
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