A Case study of the International Strategy of a Taiwanese Porcelain Company: Franz Collection Inc.｜National Taiwan University of Science and Technology Digital Lobrary of Theses & Dissertations

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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 strategy 、internationalization 、small and medium enterprises 、Franz Collection Inc.
Keywords (in other languages):	international strategy, internationalization, small and medium enterprises, Franz Collection Inc.
Reference times:	Clicks: 643 Downloads: 4
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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.

ABSTRACT	II
ACKNOWLEDGEMENT	III
CONTENT	IV
LIST OF TABLES	VII
LIST OF FIGURES	VIII

CHAPTER I: INTRODUCTION	1
1. RESEARCH MOTIVATION	1
2. RESEARCH OBJECTIVE	1
3. RESEARCH SCOPE	2
4. CONTENT AND THESIS FLOWCHART	2

CHAPTER II: LITTERATURE REVIEW	4
1. BACKGROUND OF INTERNATIONAL STRATEGY	4
1.1. IDENTIFY INTERNATIONAL OPPORTUNITIES	6
1.1.1. INCREASED MARKET SIZE	6
1.1.2. RETURN ON INVESTMENT	7
1.1.3. ECONOMIES OF SCALE AND LEARNING	7
1.1.4. LOCATION ADVANTAGES	7
1.2. EXPLORE RESOURCES AND CAPABILITIES	7
1.2.1. INTERNATIONAL BUSINESS-LEVEL STRATEGIES	7
1.2.2. INTERNATIONAL CORPORATE-LEVEL STRATEGIES	9
1.3. MODE OF ENTRY	10
1.4. STRATEGIC COMPETITIVENESS OUTCOMES	11
1.4.1. RETURNS OF INTERNATIONALIZATION – BETTER PERFORMANCE	11
1.4.2. INTERNATIONALIZATION AND INNOVATION	11
2. MANAGEMENT PROBLEMS AND RISKS 	12
2.1. POLITICAL RISK	12
2.2. ECONOMICAL RISK	12
2.3. MANAGEMENT PROBLEMS	12

CHAPTER III: RESEARCH METHODOLOGY	13
1. RESEARCH DESIGN: CASE STUDY APPROACH	13
1.1. DATA COLLECTION	13
1.1.1. PRIMARY DATA	13
1.1.2. SECONDARY DATA	13
2. INTERVIEW PROCESS	13
2.1. INTERVIEW QUESTIONS	13
3. RESEARCH LIMITATION	14
4. DATA ANALYSIS	14

CHAPTER IV: INDUSTRY ANALYSIS AND COMPANY PROFILE	16
1. INDUSTRY ANALYSIS	16
1.1. THE HOME DECOR INDUSTRY: SIZE AND STRUCTURE	16
1.2. CONSUMERS DEMOGRAPHICS	17
1.3. INDUSTRY 5 FORCES ANALYSIS	17
1.3.1. THREAT OF NEW ENTRANTS	18
1.3.2. BARGAINING POWER OF SUPPLIERS	18
1.3.3. BARGAINING POWER OF CUSTOMERS	19
1.3.4. THREAT OF SUBSTITUTE PRODUCTS	19
1.3.5. RIVALRY AMONG EXISTING COMPETITORS	19
2. COMPANY PROFILE	20

CHAPTER V: COMPANY ANALYSIS	22
1. COMPANY ANALYSIS	22
1.1. COMPANY HISTORY	22
1.2. CORE COMPETENCES – PRODUCT PROFILE	24
1.3. ORGANIZATION STRUCTURE	25
1.3.1. PRODUCT DESIGN AND DEVELOPMENT PROCESS	25
1.3.2. OPERATIONAL STRUCTURE OF FRANZ	26
1.4. MARKETING MIX (4PS)	27
1.5. FRANZ’S COMPETITION ON THE PORCELAIN MARKET	28
1.6. SWOT ANALYSIS	28

CHAPTER VI: CASE ANALYSIS	30
1. FRANZ’S INTERNATIONAL STRATEGY	30
1.1. IDENTIFY INTERNATIONAL OPPORTUNITIES	30
1.1.1. INCREASED MARKET SIZE	30
1.1.2. RETURN ON INVESTMENT	30
1.1.3. ECONOMIES OF SCALE AND LEARNING	31
1.1.4. LOCATION ADVANTAGE	31
1.2. EXPLORE RESOURCES AND CAPABILITIES	32
1.2.1. FRANZ’S INTERNATIONAL BUSINESS-LEVEL STRATEGY	32
1.2.2. FRANZ’S INTERNATIONAL CORPORATE-LEVEL STRATEGY	33
1.3. MODE OF ENTRY	34
1.4. CHALLENGES OF AN INTERNATIONAL ENVIRONMENT	34
1.5. STRATEGIC COMPETITIVENESS OUTCOMES	35
1.5.1. RETURNS OF INTERNATIONALIZATION – BETTER PERFORMANCE	35
1.5.2. INTERNATIONALIZATION AND INNOVATION	36
1.5.3. FRANZ COLLECTION AWARDS	36

CHAPTER VII: CONCLUSION	40
1. FRANZ COLLECTION INC. STRATEGY	40
1.1. FRANZ COLLECTION INC. INTERNATIONAL STRATEGY	40
1.1.1. INTERNATIONAL OPPORTUNITIES	40
1.1.2. RESOURCES AND CAPABILITIES	40
1.1.3. MODE OF ENTRY	41
1.1.4. CHALLENGES	41
1.1.5. STRATEGIC OUTCOMES	41
1.2. KEY FACTORS FOR SUCCESS	41
2. FUTURE DEVELOPMENT	42
2.1. PRODUCT DIVERSIFICATION: ADDING SILK	42
2.2. FOCUS ON CHINA AND RUSSIA	42
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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