The Research on Core Competence and Development Strategy of the Value Chain for Taiwan Hand Tool Manufacturers - A Case Study of "A" Corporation

• Main Authors: Chen, Jung-Pan, 陳榮邦
• Other Authors: Chen, Quang-Hua
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/81992859403683383827

碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 96 === Thanks to the continuous product development and the expansion of the production bases in mainland China by some of the labor intensive and low value-added manufacturers since mid-1990s, Taiwan hand tool industry has played a considerable role in the global hand tool market. Nevertheless, the significant appreciation of RMB, the increase of labor costs, the reduction of export tax rebate as well as the enforcement of the new labor contract law in the recent two years make mainland China no longer a low cost manufacturing country for hand tools. Those who rely on low cost from their China plants may have to relocate their production sites and rethinking their competition strategies. Taiwan’s total hand tool export amounted to NT$ 52 billion in 2006. Given the above adversary factors imposed externally, the Taiwanese hand tool manufacturers, should they attempt to keep competition in worldwide market, would have to implement a variety of strategic approaches internally, including improving the production yield, reducing the manufacturing cost, upgrading the overall quality, differentiating the design as well as innovating the mechanism. It may well be worth to consider putting efforts in the global logistic management and brand development as long-term ventures. This research, by applying Michael Porter’s value chain analysis and conducting investigation through questionnaire to the current status of A company in the respect of five primary activities and four support activities, along with the reference of the characteristic of Taiwan hand tool industry and the trend of the future requirements in global hand tool market, clearly exposes the core competence of the mentioned company hence provides guideline for the development strategy. It is hoped that the recommendations, as this research indicates, could be helpful to all of the manufacturers in the industry.