The Competitive Advantage of Taiwanese Electronic Component Distribution Company in China -- A Case Study of Company X

• Main Author: 蔡仲文
• Other Authors: 陳光華
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/75227346944110238314

碩士 === 國立交通大學 === 高階主管管理碩士學程 === 98 === In order to reduce production cost and increase competitiveness, most of the manufacturing companies had moved their production facilities to countries with lower labor cost. China has low cost labor and, thanks to the policy to grow her private capital and open up her market, huge market that attracts many companies, including major electronics appliance companies, to setup their factories there. Thus electronics component channels have to follow the steps of their customers and setup service locations nearby to provide dynamic and real-time services. This research studies the electronics component channel industry to get an understanding about current status and trend of this industry and about the operations of Taiwanese electronics component channels in China market. Following the thorough studies on management theories, this research adapts the five power analysis methodology of Porter to analyze this industry and the case company. By defining a number of assumptions in each of the five major factors, a questionnaire is designed in view of identifying the competitiveness and competitive advantage of the case company. Questionnaires were sent to industry related professionals to collect information about how well the electronic component distributors are doing in each aspects of the five power model. After digesting the collected information, interviews with executives of the industry then arranged to clarify the findings. Conclusion is then made and suggestion given on how the case company can act to improve her competitiveness in China market. The case company, as well as those major players in electronic component distribution industry, has weakness in bargaining with their major customers and also major suppliers. It’s concluded that besides signing-up products with good performance and quality, distributors should do more business in buy-and-sell model to gain more profit through better volume discount and by managing her inventories more efficiently. The case company is doing very well in China market because it has very strong product combination and technical supporting capabilities. By aggressively adapting herself to the very special culture and way of doing business in China market, the case company is growing very rapidly and gaining competitiveness edge in this market。