dc.description.abstract | Starting in 2010, the optical communications industry is finally showing signs of overcoming the slump brought on by the global financial crisis, and many governments have announced their intention to invest in building “Fiber-To-The-Home” (FTTH) broadband internet infrastructure, and this combined with emerging markets effected by new economic growth has spurred demand for the building of a new wave of internet infrastructure. These new factors have caused the fiber optics industry to once more enjoy high demand and growth following the bursting of the demand bubble of 2000, in addition, the continuing diversification of internet applications means that fiber optic networks are a critical and inseparable component of modern high speed broadband connections.
Through “five strength analysis” this research studies the status of competition in the passive fiber optics component industry. We use “SWOT analysis” as well as the “Diamond model theory” to discuss Taiwan’s competitive advantages in the international market, and finally use “Basic resource theory” to analyze the core competitiveness and competition strategies employed by Taiwanese passive fiber optics component firms, looking at the successful experiences of Company A to determine what factors contribute to success in this field of industry.
Based on the results of our research, the fiber optics industry is currently experiencing a period of growth. Local firms have the advantage of flexible production, mass production management ability, and being located in Southeast Asia, in close proximity to the rapidly forming fiber optics industry’s production base. All these factors combine to help these firms increase their international market share. Case company A used strategic alliances to overcome the twin challenges of insufficient skilled domestic laborers and non-optimal globalization preparation, and successfully gained a leading technological and market edge over the competition. They were able to, through the use of flexible strategies, adapt to the challenges of changing external factors as well as gather clients, resources, critical techniques and other core competitive factors. These, combined with complete product strategies and smart resource allocation, all serve as major factors contributing to this firm’s success. We have identified factors and strategies that may help a firm to expand in the growing market, and we provide them for reference and discussion. They are as follows: A firm should use mergers and strategic partnerships to obtain a larger market share, significantly expand their operations when possible, integrate domestic resources, increase their cloud computing equipments , create a globalization management plan, improve technical preparedness and so on. In order for firms to reach their peak potential, we suggest that government work towards creating the best possible commercial environment by providing incentives to attract skilled professionals with rewards and other benefits to assist firms in their development. The hope is that Taiwan can become a world leader in the fiber optics communication industry, creating new opportunities for local firms.
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