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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.
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  • 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

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