||Since the economic expansion in Taiwan from the 1960’s, small-and- middle-sized enterprises for OEM have been booming. In the 1990’s, new countries grow up, especially, since the mainland China government encourages foreign investment’ easily-obtained land, abundance of human resources, lower wages, and the huge potential in the consumer market of 1.3 billion persons, all cause middle-and-large enterprises to move westward. The advantages of small-and- middle-sized enterprises in Taiwan have been reduced gradually. Facing strong global competition and deteriorating industry environment in Taiwan, the enterprises will disappear if they fail to accelerate their reform. This paper takes company A as an example, to discuss how small-and-middle-sized enterprises in Taiwan, under the dramatically changing operational environment, find ways to continue their survival and reform using current resources; and their responding strategies.|
Company A is a customized medical equipment manufacturer with a small amount yet many varieties of product, transformed from one formerly operating a traditional large-scale consumer electronic production. It has over 10 years experience in each of two different operation strategies. The operator, relying on the resources accumulated for over 10 years in technology, management, and marketing, insists on the established operational strategy, with a streamlined organized operation with classification of production and marketing, selecting customized products in small amounts, but large varieties for high demand, and high profit reward. At the same time, the company brings in ERP to make it IT-based and entrusts professional OEM to make up the human resource deficiency. It perfects the client’s financial system to reduce sales risks by creating client franchises. The upstream and downstream value chain has been integrated perfectly, and the operational performance and sale opportunities have been strengthened. Company A transfers from cost-oriented to profit-oriented. It can still retain rational profits as in the past decade and survives with its competitive edge in the most challenging environment in Taiwan.
It is expected, through analyzing the internal resources of the Company with SWOT, by the review and application of external industry environmental strategies, by the integration of the supply chain, the management of human resources, and the creation of competitive edges to put theory into practice some key factors of its success may evolve. These would be as follows: (1) To clearly define a position and select its operating principle of being “a big fish in a small pond.” (2) To develop leading technology so as to fully play its advantages in R&D and manufacturing. (3) To use systemized knowledge management to compensate for weaknesses in human qualifications within the system. (4) To form strategic partnerships to manage and integrate the external resources using limited resources (5) To address the differences in creation by integrating many creation advantages into one sustained advantage.
The case study indicates that small-and-middle-sized enterprises in Taiwan can sustain their operation only if they can grasp critical opportunities; evaluate their effective resources; play out their specific advantages, such as flexible organization, super response, and diligent employees; adapt to new competition environments; retain their toughness of seeking innovation and changes; and adjust their development pace to set up new operational strategies.
Aaker, D.A. (1984), Strategic Market Management, Humanities, New York.
Ansoff, H.I.. (1965), Corporate Strategy, McGraw-Hill, New York.
Barney, J.B. ( 1991). “Firm Resource and Sustained Competitive Advantage,” Journal of Management, 17, 1, pp.99-120.
Boseman, Glenn (1986), Strategic Management : Text and Cases, New York: John Wiley and Sons , Inc., pp 28.
Boynton, A. C., and R. W. Zmud (1984), “An Assessment of Critical Success Factor,” Sloan Management Review, Summer, pp.19-21.
Collis and Ghemawat (1994). Industry Analysis: Understanding Industry Structure and Dynamics. John Wiley, New York
Dainel, R. D. (1961), Management Information Crisis,” Havard Business Review, Sep-Oct. Vol.39, No.5, pp.107-118.
David, F.R. (1986), Fundamentals of Strategic Management, Macmillan Pub Co.
Day, G. S. and Wensley, R. (1988), “Assessing advantage: A framework for diagnosing competitive superiority,” Journal of Marketing, 52(4), 1-20.
Ferguson, C.R. and Dickinson, R. (1982), “Critical Success Factor for Directors in the Eighties,” Business Horizons, May-June, pp.14-18.
Glueck, W. F. (1980), Business Policy and Strategy Management, 3rd, New York: McGraw-Hill.
Grove, A.S. (1996), Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company and Career, Harper Collins Business.
Hill, C.W.L., and Jones, G.R. (1995), Strategic Management Theory, Houghton Mifflin Co, New York.
Hill, C.W.L. and Jones, G.R. (2001), Strategic Management: An Integrated Approach, Houghton Mifflin, New York.
Hofer, C.W. and Schendle D.(1978)﹐Strategy Formulation: Analytical Concepts﹐West Publishing Co.
Kotler, P. (2003), Marketing Management, Prentice Hall, New York.
Kenichi O. (1987), The Mind of the Strategy – The Art of Japanese Business, McGraw-Hill, New York.
Leidecker, J.K. and Bruno, A.V..(1984), “Identifying and Using Critical Success Factors”, Long Range Planning, Vol.17,No.1, 1984, pp.26-52.
Mescon M.H., Albert, M. and Khedouri, F. (1998), Management, Prentice Hall.
Porter, M,E. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press.
Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance, Free Press.
Rockart, J. F. (1979), “Chief executives define their own date needs,” Harvard Business Review, 65(8), pp 81-93.
Scherer, F.M. (1970), Industrial Market Structure and Economic Performance, Rand McNally College Publishing Co, Chicago.
Srivastava, R.K, Fahey, L. and Christensen, H.K. (2001), “The resource-based view and marketing: The role of market-based assets in gaining competitive advantage,” Journal of Marketing, Vol. 27, No. 6, 777-802.
Shepherd, W.G. (1979), The economics of industrial organization, Prentice-Hill, New York.
Weihrich, H.(1982), Heinz Weihrich : The Tows Matrix: A Tool for Situational Analysis, McGraw-Hill, New York.
黃營杉譯(民85)，Hill, Charles W.L., Jones, Gareth 著，「策略管理」，華泰文化。