dc.description.abstract | The purpose of this paper is to study on the profit-making patterns and the prospects of solder industry by using F. M. Scherer’s structure-conduct- performance (SCP) theoretical framework. First, we discuss about the industrial characteristics and competitive conditions. Then, the effects of market structures, firm conducts, industrial performances and government policies to the industry are analyzed. Also, a comprehensive analysis and competitive strategies are made through Strengths-Weaknesses-Opportunities-Threats (SWOT) approach.
Except for industrial analysis, a selected firm’s case study is also included. A case study corresponds to the interaction between the whole solder industry and individual company. Through the case, it shows the firm’s conduct and feasible strategies. Finally, we further look into the selected company’s competitive advantage and give it some appropriate advises of developing strategies and corresponding countermeasures.
To sum up, as the downstream industry improved technology, such as SMT and assembly, electronic products entered into the era of meager profit these few years. Companies in solder industry boost the technologies of to keep their leadership and competitive power between competitors. Thus, companies’ research and development policy emphasize on the high-tech and high-threshold products. Also, expanding the production line, improving the qualities of products and after-sales services, expanding to the international markets and training technical skills are strategies taken by companies to construct a great brand image and rise the market share. Meanwhile, they integrate upstream industry to minimize cost and enhance the profit.
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