| dc.description.abstract | From the third quarter of 2008, the global revenue for notebook PCs officially exceeded that of desktop PCs. Additionally, most global notebook and component makers’ factories are located in eastern China. Therefore, because the motherboard customers have been relocating to south China, it is definitely necessary for V company (Suzhou), which is a permanent supplier of connection cables for desktop PCs or motherboards, to adjust its manufacturing policy to make notebook PC related mainstream products instead of high-cost and low-effective connection cables for Japanese consumer’s appliances. This study intends to investigate the strategies and progresses of productive transformation, and to find out the essential elements of transformation of a case company by investigating the problems with which the industry is dealing.
Starting with analyzing the current situation and future development of the connection cable industry market, the study subsequently applies industry analysis tools including Michael Porter’’s Five Forces Model, SWOT Analysis, and the Analysis of the Industry Matrix, to analyze the internal and external competitive environments which the case company is facing, and its transformation strategies. The study adopts the qualitative research method to collect sublevel information as well as to interview the senior management of the case company.
Combining a search of the literature with case studies, the study concludes the essential elements of successful productive transformation to be the following:
1. Market sensibility: With market sensibility, the business operator rapidly enters the market by using broad personal networks and strategic cooperation; 2. Vertical integration: Vertically integrate main components with company resources, or integrate supply chains with strategic cooperation; 3. Professionals: Introduce professionals with industrial experience to shorten the time for groping and reduce the chance of making mistakes; 4. Comprehensive plans: Just as for a management cycle, a productive transformation needs comprehensive plans to ensure a successful transformation; 5. Continuous improvement: Keep finding solutions, improving and accumulating successful experiences; 6. Changes to external environment: Pay attention to changes in the external environment, introduce the latest technology, reduce production costs, and raise ratio of qualified products; 7. Financial support: Comprehensive financial support for transformation.
The study addresses notices for the process of productive transformation as the following: 1. Construct and effectively lead a trustworthy professional team; 2. Enhance the process of new product introduction (NPI); 3. Comprehensively take account of requirements for both product characteristics and control of the environment; 4. Enhance the professional image during the process of transformation, strengthen customer relationships and risk-management capability.
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