Since the government adopted the “ Patience and Goodwill” policy to decelerate the ongoing industries’ emigration, it inevitably results the deterioration on Taiwan political and economic environments and of being prone to the world factory –China. We could see that small to medium size companies are facing the dilemma- emigrating to China or stay. All industries in Taiwan have been forced to upgrade either for survive or business longevity
This case study based on the competitive advantage theory and it evaluate the strategies incurred during small to medium size companies’ internal upgrading; moreover, further identify its causes, directions and the condition within the whole process to find out the confronting and solution
The goal is to find the way out, structure, and module. Herewith provide clear explanation and examination in order to further formulating for subject companies under circumstances of operating and business expansion. Meanwhile, the re-examination and adjustment of the formula either as being references and instruction for subject companies or fundament for future research after long-term operation.
In this research analysis, (1) analyses external fastener industry environment and classify the success factors. (2) Analyses the subject company internal structure and characters to identify its key factor to success in the industry, (3) Marketing analysis. By applying the “ Five forces framework and “ SWOT” in order to- Firstly, realize the potential market opportunity and expanding space; Secondly, try to identify its core competency and competitive advantage. Thirdly, construct its sustainable competitive advantage to maintain its strength and finally lead to development and benefited prolong operation in the market place.
The disclose of study:
(1) Most of traditional industries have been on the progress of upgrading
(2) Most of upgrading traditional manufacturers/suppliers have complete the basic operational upgrading.
(3) Observing two tips from the smile curve, the early adopters have been benefited from upgrading changes.
(4) The research subject –S company, from a small size trading company to nowadays a multinational company, the continuous upgrading by adoption of positioning strategy is similarly develop toward two sides of the curve and the effects has been appealed.
All above findings support there should have a model of best practice be generated for all the subject companies or similar industry reference
Key words: sustainable competitive advantages, key success factors, key survival factor.