Basic Search / Detailed Display

Author: Barbara Tosi
Barbara - Tosi
Thesis Title: A Case study of the International Strategy of a Taiwanese Porcelain Company: Franz Collection Inc.
A Case study of the International Strategy of a Taiwanese Porcelain Company: Franz Collection Inc.
Advisor: 劉代洋
Day-Yang Liu
Committee: Chun-Nan Chen
Chun-Nan Chen
Woan-Yuh Jang
Woan-Yuh Jang
Degree: 碩士
Master
Department: 管理學院 - 管理學院MBA
School of Management International (MBA)
Thesis Publication Year: 2014
Graduation Academic Year: 102
Language: 英文
Pages: 57
Keywords (in Chinese): international strategyinternationalizationsmall and medium enterprisesFranz Collection Inc.
Keywords (in other languages): international strategy, internationalization, small and medium enterprises, Franz Collection Inc.
Reference times: Clicks: 643Downloads: 4
Share:
School Collection Retrieve National Library Collection Retrieve Error Report
  • The purpose of this study is to analyze the international expansion and business development of Franz Collection Inc., a Taiwanese manufacturer of fine china or porcelain. Franz Collection Inc. is positioned as a luxury porcelain brand targeting high-end international markets. Increasing market size and opportunities are the main reasons for companies to go global but in the case of Franz Collection Inc., its internationalization provided it with greater knowledge and reach that led to an impressing business model development from being a trading and original equipment manufacturing company (OEM) to becoming an own-brand manufacturing company (OBM).

    A case study is used to analyze the international strategy of Franz Collection Inc. Information in this study comes from interviewing a spokesperson at Franz Collection Inc., and observation during company visits, and collecting secondary data from diverse sources. A five-force model of the industry as well as a SWOT analysis of the company are also provided and used in this study to analyze the competitiveness of the industry and the competitive edge of Franz Collection Inc.
    The findings of this research allow us to observe the growth of Franz Collection Inc. from the OEM Seagull to the major porcelain brand through its internationalization. The international hybrid strategy that they used is a mix of a Global Strategy and an Integrated Cost and Differentiation Strategy to create and maintain a competitive edge on the markets. This study also allows defining Franz Collection Inc.’s Key Factors for Success as the vision, creativity and risk taking attitude of the CEO, the company’s unique techniques and craftsmanship and their ability to always look further as well as their successful partnerships to diversify the brand and increase its recognition.


    The purpose of this study is to analyze the international expansion and business development of Franz Collection Inc., a Taiwanese manufacturer of fine china or porcelain. Franz Collection Inc. is positioned as a luxury porcelain brand targeting high-end international markets. Increasing market size and opportunities are the main reasons for companies to go global but in the case of Franz Collection Inc., its internationalization provided it with greater knowledge and reach that led to an impressing business model development from being a trading and original equipment manufacturing company (OEM) to becoming an own-brand manufacturing company (OBM).

    A case study is used to analyze the international strategy of Franz Collection Inc. Information in this study comes from interviewing a spokesperson at Franz Collection Inc., and observation during company visits, and collecting secondary data from diverse sources. A five-force model of the industry as well as a SWOT analysis of the company are also provided and used in this study to analyze the competitiveness of the industry and the competitive edge of Franz Collection Inc.
    The findings of this research allow us to observe the growth of Franz Collection Inc. from the OEM Seagull to the major porcelain brand through its internationalization. The international hybrid strategy that they used is a mix of a Global Strategy and an Integrated Cost and Differentiation Strategy to create and maintain a competitive edge on the markets. This study also allows defining Franz Collection Inc.’s Key Factors for Success as the vision, creativity and risk taking attitude of the CEO, the company’s unique techniques and craftsmanship and their ability to always look further as well as their successful partnerships to diversify the brand and increase its recognition.

    ABSTRACT II ACKNOWLEDGEMENT III CONTENT IV LIST OF TABLES VII LIST OF FIGURES VIII CHAPTER I: INTRODUCTION 1 1.1. RESEARCH MOTIVATION 1 1.2. RESEARCH OBJECTIVE 1 1.3. RESEARCH SCOPE 2 1.4. CONTENT AND THESIS FLOWCHART 2 CHAPTER II: LITTERATURE REVIEW 4 2.1. BACKGROUND OF INTERNATIONAL STRATEGY 4 2.1.1. IDENTIFY INTERNATIONAL OPPORTUNITIES 6 2.1.1.1. INCREASED MARKET SIZE 6 2.1.1.2. RETURN ON INVESTMENT 7 2.1.1.3. ECONOMIES OF SCALE AND LEARNING 7 2.1.1.4. LOCATION ADVANTAGES 7 2.1.2. EXPLORE RESOURCES AND CAPABILITIES 7 2.1.2.1. INTERNATIONAL BUSINESS-LEVEL STRATEGIES 7 2.1.2.2. INTERNATIONAL CORPORATE-LEVEL STRATEGIES 9 2.1.3. MODE OF ENTRY 10 2.1.4. STRATEGIC COMPETITIVENESS OUTCOMES 11 2.1.4.1. RETURNS OF INTERNATIONALIZATION – BETTER PERFORMANCE 11 2.1.4.2. INTERNATIONALIZATION AND INNOVATION 11 2.2. MANAGEMENT PROBLEMS AND RISKS 12 2.2.1. POLITICAL RISK 12 2.2.2. ECONOMICAL RISK 12 2.2.3. MANAGEMENT PROBLEMS 12 CHAPTER III: RESEARCH METHODOLOGY 13 3.1. RESEARCH DESIGN: CASE STUDY APPROACH 13 3.1.1. DATA COLLECTION 13 3.1.1.1. PRIMARY DATA 13 3.1.1.2. SECONDARY DATA 13 3.2. INTERVIEW PROCESS 13 3.2.1. INTERVIEW QUESTIONS 13 3.3. RESEARCH LIMITATION 14 3.4. DATA ANALYSIS 14 CHAPTER IV: INDUSTRY ANALYSIS AND COMPANY PROFILE 16 4.1. INDUSTRY ANALYSIS 16 4.1.1. THE HOME DECOR INDUSTRY: SIZE AND STRUCTURE 16 4.1.2. CONSUMERS DEMOGRAPHICS 17 4.1.3. INDUSTRY 5 FORCES ANALYSIS 17 4.1.3.1. THREAT OF NEW ENTRANTS 18 4.1.3.2. BARGAINING POWER OF SUPPLIERS 18 4.1.3.3. BARGAINING POWER OF CUSTOMERS 19 4.1.3.4. THREAT OF SUBSTITUTE PRODUCTS 19 4.1.3.5. RIVALRY AMONG EXISTING COMPETITORS 19 4.2. COMPANY PROFILE 20 CHAPTER V: COMPANY ANALYSIS 22 5.1. COMPANY ANALYSIS 22 5.1.1. COMPANY HISTORY 22 5.1.2. CORE COMPETENCES – PRODUCT PROFILE 24 5.1.3. ORGANIZATION STRUCTURE 25 5.1.3.1. PRODUCT DESIGN AND DEVELOPMENT PROCESS 25 5.1.3.2. OPERATIONAL STRUCTURE OF FRANZ 26 5.1.4. MARKETING MIX (4PS) 27 5.1.5. FRANZ’S COMPETITION ON THE PORCELAIN MARKET 28 5.1.6. SWOT ANALYSIS 28 CHAPTER VI: CASE ANALYSIS 30 6.1. FRANZ’S INTERNATIONAL STRATEGY 30 6.1.1. IDENTIFY INTERNATIONAL OPPORTUNITIES 30 6.1.1.1. INCREASED MARKET SIZE 30 6.1.1.2. RETURN ON INVESTMENT 30 6.1.1.3. ECONOMIES OF SCALE AND LEARNING 31 6.1.1.4. LOCATION ADVANTAGE 31 6.1.2. EXPLORE RESOURCES AND CAPABILITIES 32 6.1.2.1. FRANZ’S INTERNATIONAL BUSINESS-LEVEL STRATEGY 32 6.1.2.2. FRANZ’S INTERNATIONAL CORPORATE-LEVEL STRATEGY 33 6.1.3. MODE OF ENTRY 34 6.1.4. CHALLENGES OF AN INTERNATIONAL ENVIRONMENT 34 6.1.5. STRATEGIC COMPETITIVENESS OUTCOMES 35 6.1.5.1. RETURNS OF INTERNATIONALIZATION – BETTER PERFORMANCE 35 6.1.5.2. INTERNATIONALIZATION AND INNOVATION 36 6.1.5.3. FRANZ COLLECTION AWARDS 36 CHAPTER VII: CONCLUSION 40 7.1. FRANZ COLLECTION INC. STRATEGY 40 7.1.1. FRANZ COLLECTION INC. INTERNATIONAL STRATEGY 40 7.1.1.1. INTERNATIONAL OPPORTUNITIES 40 7.1.1.2. RESOURCES AND CAPABILITIES 40 7.1.1.3. MODE OF ENTRY 41 7.1.1.4. CHALLENGES 41 7.1.1.5. STRATEGIC OUTCOMES 41 7.1.2. KEY FACTORS FOR SUCCESS 41 7.2. FUTURE DEVELOPMENT 42 7.2.1. PRODUCT DIVERSIFICATION: ADDING SILK 42 7.2.2. FOCUS ON CHINA AND RUSSIA 42 7.3. RECOMMENDATIONS 42 REFERENCES 44 APPENDIX 47 EXHIBIT 1: COMPANY LOGO 47 EXHIBIT 2: THE AWARD WINNING PAPILLON BUTTERFLY SERIES 48 EXHIBIT 3: JOINT PROMOTION AND CO-BRANDING 49

    1. Alvarez, M., Binkley, E., Bivens, J., Highers, P., Poole, C., & Walker, P, 1990. Case-based instruction and learning: An interdisciplinary project. Proceedings of 34th Annual Conference (pp. 2-18), College Reading Association. Reprint.
    2. Antoncic B., Impacts of diversification and corporate entrepreneurship strategy making on growth and profitability: A normative model, Journal of Enterprising Culture 14(1) (2006) 49-63.
    3. Barr P.S., Current and Potential Importance of Qualitative Methods in Strategy Research, in: J.a.D.D.B. David J. Ketchen (Ed.), Research Methodology in Strategy and Management, Elsevier Ltd, Netherland, 2004, pp. 166.
    4. Bei Lien-Ti, Chen Shih-Fen, 2010, “Franz Collection, Inc.: The Road From Subcontracting to Brand Marketing”, Ivey Publishing, (2010)
    5. Bonoma, T. V., 1983. Get more out of your tradeshows. Harvard Business Review January – February,75–83.
    6. Chung, H. F. L. & Enderwick, P., 2001. An Investigation of Market Entry Strategy Selection: Export vs. Foreign Direct Investment Modes: A Home-Host Country Scenario. Asia Pacific Journal of Management, 18(4), 443-460.
    7. Craig, C. S. & Douglas, S. P., 1996. Developing strategies for global markets: an evolutionary perspective. Columbia J. WorldBus. 31,70–81
    8. Davis, D., Morris, M., & Allen, J., 1991. Perceived environmental turbulence and its effect on selected entrepreneurship, marketing, and organizational characteristics in industrial firms. J. Acad. Mark. Sci,19(1), 43–51
    9. Doukas, J., Travlos, L. G., (1988), “The effect of corporate multinationalism on shareholders' wealth: evidence from international acquisitions”, The Journal of Finance 43 (12, 1988)
    10. Dwyer, F. R., Schurr, P. H., & Oh, S., 1987. Developing buyer-seller relations. Journal of Marketing, 51(2), 11–27.
    11. Feagin, J., Orum, A., & Sjoberg, G. (Eds.), 1991. A case for case study. Chapel Hill, NC: University of North Carolina Press.
    12. Hitt, M. A., Ireland, R. D., Hoskisson, R. E., 2011, The management of strategy: concepts and cases, 9th edition, South-Western Cengage Learning (2011)
    13. Hitt, M. A., Tihanyi, L., Miller, T. M., & Conelly, B. 2006. International diversification: Antecedents, outcomes, and moderators. Journal of Management, 32, 831-867
    14. Hofer, C. W. & Schendel, D., 1978. Strategy Formulation: Analytical Concepts. St. Paul : West Publishing.
    15. Johanson, J. & Vahlne, J.E., 1977. “The internationalization process of the firm – A model of knowledge development and increasing foreign market commitments, Journal of International Business Studies 88, pp. 23-32
    16. Johanson, J. & Vahlne, J. E., 1990. The Mechanism of Internationalization. International Marketing Review, 7(4) (1990), ll-24.
    17. Lu, J. L. & Beamish, P. W., 2002.The Internationalization And Growth of SMES, Winnipeg, Asac.
    18. Oviatt, B. & McDougall, P., 1995. Global start-ups: entrepreneurs on a worldwide stage. Acad. Manage. Exec. 9(2), 30–44.
    19. Porter, M. E., 1980, Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press, (1980). (Republished with a new introduction, 1998.)
    20. Renner, E.T.-P.a.M., Analyzing Qualitative Data, Cooperative Extension Publishing Operations, USA, 2003, pp. 12.
    21. Root, F. R., 1994. Entry Strategies for International Markets. MA: Lexington.
    22. Sakai, K., 2002. Global Industrial Restructuring: Implications for Smaller Firms. STI Working Paper 2002/4, OECD, Paris.
    23. Verity, J., 1994.The information revolution. Business Week, May 18, 1994, 12–18.
    24. Walker B., and Larreche, Marketing strategy: Planning and Implementation, Times Mirror Higher Education Group, Inc, USA, 1995.
    25. Wernerfelt, B., 1984 .A resource-based view of the firm. Strategic Management Journal, 5(2),171–180.
    26. Wind, Y., Douglas, S. P., & Perlmutter, H., 1973. Guidelines for developing international marketing strategies. J.Mark., 37,14–23.
    27. Yip, G., Dempster, A., (2008), “Using the Internet to Enhance Global Strategy”, European Management Journal 23 (12, 2005) 1-13
    28. Young, S., HAmill, J., Wheller, C., & Davies, J. R.,1989. International market entry and development. Hemel Hempstead‘ Harvester Wheat sheaf.

    29. Global Industry Analysts, 2012, Global Home Decor: Industry Analysis retrieved from: http://www.cdotsys.com/global-home-decor-industry-analysis/
    30. Global Industry Analysts, 2012, Global Home Furnishings Industry Report retrieved from: http://www.reportlinker.com/p097842-summary/World-Home-Furnishings-Market-Brief.html
    31. Henry Blodget, Business Insider, 2013, Amazon's Letter To Shareholders Should Inspire Every Company In America retrieved from: http://www.businessinsider.com/amazons-letter-to-shareholders-2013-4
    32. Li Li-man, Rain Chiang, 2010, Franz Uses 'Hybrid' Strategy to Explore Overseas Market retrieved from: http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20101013000120&cid=1102
    33. Unity Marketing, 2008, Gifts and Decorative Accents Report 2008 retrieved from: www.unitymarketingonline.com/cms_gifting/gifting/GDA_2007.php and from: http://www.marketingcharts.com/wp/verticals/retail-and-e-commerce/gifts-and-home-decor-market-on-steady-growth-trajectory-3788/
    34. Tuo Yannan, China Daily, 2012, Franz's mainland focus goes on with 10 new stores in 2012 retrieved from: http://usa.chinadaily.com.cn/epaper/2012-06/26/content_15523257.htm

    35. Franz Collection, Awards retrieved from: http://www.franzcollection.com.tw/us/award
    36. Franz Collection, Brand Story retrieved from: http://www.franzcollection.com.tw/us/b_story

    無法下載圖示 Full text public date 2019/06/11 (Intranet public)
    Full text public date This full text is not authorized to be published. (Internet public)
    Full text public date This full text is not authorized to be published. (National library)
    QR CODE