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Author: 林祥傳
Hsiang-chuan Lin
Thesis Title: A Study on Global Positioning Strategy of Taiwan’s IT Industry at Convergence Inflection Point
A Study on Global Positioning Strategy of Taiwan’s IT Industry at Convergence Inflection Point
Advisor: 劉代洋
Day-yang Liu
Committee: 張琬喻
none
黃彥聖
none
Degree: 碩士
Master
Department: 管理學院 - 管理研究所
Graduate Institute of Management
Thesis Publication Year: 2006
Graduation Academic Year: 94
Language: 英文
Pages: 92
Keywords (in Chinese): Positioning StrategyInflection pointTaiwan’s IT industryConvergence of Technology
Keywords (in other languages): Positioning Strategy, Inflection point, Taiwan’s IT industry, Convergence of Technology
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  • Information Technology is the one of the most important industries for Taiwan economy. More than all the other industries, it has been changing and evolving all the times by the technology trend and business model development.
    Starting from 2005, the convergence of different industries, IT, Telecom, Broadcasting and Media, is happening such as the 3G +IP+DVB-H smart phone operation Thus, with the convergence boom, it is the timing for IT industry at the 2nd inflection point when the more complicatedly fundamental changes than ever that of the first one in 1995 are being happening.
    Therefore, at the convergence infection point, the most important for Taiwan’s IT industry is to make the right strategy on how to overcome the coming challenges, especially the micro-profit from too ODM/ODM oriented business model and the complicated convergence of the technologies and industries in the coming digital age, and then how further to seize the huge opportunities from the convergence boom.
    So, the study is trying to approach an innovative strategy to upgrade Taiwan’s IT industry to the higher worldwide positioning and also figure out a feasible working model to practice and implement.
    Through studying the literatures, observing the global and Taiwan’s IT environment and situation, visiting and discussing with the Taiwan IT leaders, and finally referring to case studies, we have derived the global positioning strategy for Taiwan, GVI, Global Value-Innovated Integrator, at the convergence inflection point, which means to more deeply develop Taiwan’s own core competence and, meanwhile, to maximize the industry and product values by integrating Taiwan’s core with other countries’ strengths and resources that Taiwan lacks.
    Based on the GVI strategy, a “UTIC” 4-country cooperation model, including USA, Taiwan, India and China, is applied as one of the feasible practices, which has been demonstrated by three successful cases studies. So, this research result is providing the reference for Taiwan’s IT industry to make a fitting global positioning strategy in order to win out in the most competitive and prosperous convergent digital world at the critical inflection point.


    Information Technology is the one of the most important industries for Taiwan economy. More than all the other industries, it has been changing and evolving all the times by the technology trend and business model development.
    Starting from 2005, the convergence of different industries, IT, Telecom, Broadcasting and Media, is happening such as the 3G +IP+DVB-H smart phone operation Thus, with the convergence boom, it is the timing for IT industry at the 2nd inflection point when the more complicatedly fundamental changes than ever that of the first one in 1995 are being happening.
    Therefore, at the convergence infection point, the most important for Taiwan’s IT industry is to make the right strategy on how to overcome the coming challenges, especially the micro-profit from too ODM/ODM oriented business model and the complicated convergence of the technologies and industries in the coming digital age, and then how further to seize the huge opportunities from the convergence boom.
    So, the study is trying to approach an innovative strategy to upgrade Taiwan’s IT industry to the higher worldwide positioning and also figure out a feasible working model to practice and implement.
    Through studying the literatures, observing the global and Taiwan’s IT environment and situation, visiting and discussing with the Taiwan IT leaders, and finally referring to case studies, we have derived the global positioning strategy for Taiwan, GVI, Global Value-Innovated Integrator, at the convergence inflection point, which means to more deeply develop Taiwan’s own core competence and, meanwhile, to maximize the industry and product values by integrating Taiwan’s core with other countries’ strengths and resources that Taiwan lacks.
    Based on the GVI strategy, a “UTIC” 4-country cooperation model, including USA, Taiwan, India and China, is applied as one of the feasible practices, which has been demonstrated by three successful cases studies. So, this research result is providing the reference for Taiwan’s IT industry to make a fitting global positioning strategy in order to win out in the most competitive and prosperous convergent digital world at the critical inflection point.

    ABSTRACT I ACKNOWLEDGEMENTS II TABLE OF CONTENTS III LIST OF FIGURES V LIST OF TABLES VI CHPATER ONE INTRODUCTION 1 1.1 Research Background and Motivation 1 1.2 Research Purpose 4 1.3 Research Process and Scope 5 1.4 Research Limitation 7 1.5 Research Contribution: 7 CHAPTER TWO LITERATURE REVIEW 8 2.1 Competitive Advantages 8 2.2 SWOT Analysis 18 2.3 Blue Ocean Strategy 22 2.4 Strategic Inflection Point 26 2.5 Theses Review 31 CHAPTER THREE RESEARCH DESIGN 37 3.1 Research Methodology 37 3.2 Analytical Framework 38 3.3 Data Sources 39 CHAPTER FOUR TAIWAN’S IT INDUSTRY AT THE CONVERGENCE INFLECTION POINT 40 4.1 The Infection Point 40 4.2 IT Convergence Boom 45 4.3 IT Industry at Convergence Infection Point 47 4.4 At Convergence Infection Point, Taiwan’s IT Industry Challenges 49 CHAPTER FIVE GLOBAL POSITIONING STRATEGY OF TAIWAN’S IT INDUSTRY 58 5.1 SWOT Analysis 58 5.2 How to Achieve and Implement 72 CHAPTER SIX SUMMARY AND CONCLUSION 81 6.1 Research Conclusion 81 6.2 Research Suggestion 83 REFERENCES 84

    1. Literature
    (1). Chen ,Sheng-Chiang A Study on The Business Strategy of Taiwan LCD TV “Industry for Wu, Pei-chi A STUDY OF THE GLOBAL LOGISTICS MANAGEMENT STRATEGY-CASE STUDY ON ELECTRONIC INFORMATION INDUSTRY IN TAIWAN, 1998
    (2). Grove, Andrew S. “Only the Paranoid Survive” 1998
    (3). Grove, Andrew S.” Managing Segment Zero” Leader to Leader, No. 11, 1999
    (4). Hsu, Tsung-Shin, The Competitive Strategy On Digital TV Panel Industry--- Plasma Display Panel As Example, 2005
    (5). Kim, W. Chan and Mauborgne, Renee: Blue Ocean Strategy. Harvard Business Review. October 2004
    (6). Kim,W. Chan and Mauborgne, Renee : Mauborgne: Blue Ocean Strategy. Harvard Business School Press. 2005.
    (7). Kim,W. Chan and Mauborgne, Renee: Blue Ocean Strategy. From Theory to Practice. Californian Management Review. Spring 2005
    (8). Lin, Hsuan-Ping, LIN, The Firm’s Business Pattern Decision Strategy— A Case Study of Taiwan IT Industry, 2002
    (9). Porter, Michael E.. Competitive Strategy. New York, New York: The Free Press, 1980.
    (10). Porter, Michael. E. “Competitive Advantage: Creating and Sustaining Superior Performance”, New York, Free Press, 1985
    (11). Porter, Michael. E. “The Competitive Advantages of Nations”, Free Press. New York
    (12). Porter, Michael. E., “Competitive Strategy” Techniques for Analyzing Industries and Competitors Advantages”, New York, Free Press, 1980
    (13). The Slow Pace for Fast Change: Brining innovations in a Highly Connected World (Harvard Business School Press 2003).
    (14). Weihrich, Heinz, The SWOT Matrix-A Tool fpr Situational Analysis, Long-Rang Planning, 1982
    (15). Yung, Ing-Shane , Lai, Ming-Hong , “Competitive Advantages Created by Cluster Collaboration Network for Supplier Management in Notebook PC Production ,2004“

    2. Websites
    This website is a compilation of different essays written by different authors on Porter’s Five Force Analysis. These essays offer evaluations of specific industries using Porter’s Five Force Analysis. Examples of such industries include banking, telecommunication, supermarkets and much more.
    1. http://www.fedex.com (31 January 2003)
    This website is FedEx’s main website including general information about the FedEx Corporation.
    2. http://www.geocities.com (30 January 2003)
    This website also offers general information about Porter’s Five Force Analysis.
    3. http://www.Kelloggs.com (31 January 2003)
    This website is Kellogg’s main website including general information about the Kellogg Corporation.
    4. http://www.quickmba.com (29 January 2003)
    This website includes a detailed summary of Porter’s Analysis. Information used from this site includes a diagram of Porter’s Five Forces.
    5. http://www.themanager.org (31 January 2003)
    This website offers a description of various management tools including Porter’s Five Force Analysis.
    http://www.blueoceanstrategy.com/
    IDC 2006 Prediction,
    http://www.idc.com
    http://mic.iii.org.tw
    http://www.topology.com.tw
    http://www.digitimes.com.tw
    http://www.tkec.com.tw
    http://www.foxconn.com
    http://www.tataelxsi.com
    http://www.acer.com.
    http://www.intel.com

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