||In recent years, the rise of the BRIC economies (China, India, Brazil and Russia) has caused industries in the developed and even in the developing countries, to shift toward the rising economies. The Chinese market has in the recent years become the fastest growing market with tremendous potential. Business enterprises have not only laid their eyes on the cheap labor costs, but are also deeply attracted by its market opportunities. Taiwan holds the advantage of being close in geographic proximity, and similar language and culture with China. Many Taiwanese business enterprises have made China the first choice when considering extending business to foreign markets. However, the enormous market incentives have accelerated competition within the industry. In addition to survival, it is more important for business enterprises to continually grow and profit. Therefore it is the aim of this study to investigate how business enterprises could find ways of ensuring its survival, which allows it to grow and profit, in the fierce Chinese battlefield. It is hoped from the study of Chinese business environment and analysis of current status, that key success factors of Taiwanese business enterprises in the industry can be identified. It is expected that the results of the study can be valuable recommendations to the industry.|
The traditional industries have always been the foundation of Taiwan’s economic growth. The contributions made by the manufacturing industry to the economic growth of Taiwan cannot be overlooked. However, as the high-tech industries prosper and change of the domestic industry structure, traditional industries had been in an inferior position with respect to acquisition of resource, such as human and financial resources. Faced with a fierce competitive environment, how the traditional manufacturing industries break out of the growth-stagnant bottleneck requires the identification of key success factors of the industry. Business strategies should be developed according to such factors, putting effort in strengthening and building on the success factors, so that greatest leverage of limited resources can bring profit and continued competitive advantage. Although the copper alloy industry is considered a traditional industry, its products serve downstream users in ironmongery, electric appliance and electronics. The industry has its critical value of existence in the market’s supply chain. Hence, the copper alloy plants have been chosen as he subject for this study. Through research and analysis of the industry, the study seeks to identify the critical success factors of copper alloy strip manufacturers in managing the Chinese market. The results will enable business enterprises to develop strategies for managing the Chinese market.
This is a qualitative case study. Three largest copper alloy strip manufacturers were selected for the case study. Further to collection of secondary data on the copper alloy strip industry and supply-demand status of the China market, interviews were conducted with middle to senior managers of the manufacturers in the industry. Through the arrangement, analysis and study of secondary data and interviews, key success factors of the copper alloy industry were identified. The buying decisions and end user perspectives were referenced to validate the success factors identified from research. The study hopes to include the end user’s purchasing perspectives into the key success factors identified from industry analysis. It is hoped that the key factors identified could be more objective, so that the success factors would be of value to business enterprises.
Lastly, the key success factors of Taiwanese copper alloy strip manufacturers in conducting business in China are: (1) acquisition of core technology for high level products, (2) acquiring personnel with international capabilities and specialized knowledge in copper industry, (3) promote the bargaining power with raw material suppliers, (4) sound financial structure and financial management capabilities, and (5) establishment of network relationships. These five key success factors revolve around three critical resources, namely technology, human resource and financial resource. Through external networks, the strength of these three internal resources can bring about positive effects.