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Small and medium-sized enterprises have been an important backbone of Taiwan's economic take-off for nearly half a century. Small and medium-sized enterprises in the technology industry, under the guidance of Taiwan's complete industrial agglomeration and policies, have become one of the indispensable main drivers of Taiwan's economic miracle.
Taiwan's electronics industry is dominated by small and medium-sized enterprises, with diversified categories, and competitive advantages in every field. However, entering the international market still relies on the OEM and ODM order model of major manufacturers. Relatively small profits, fierce competition, and price wars are difficult to increase added value. High-profit companies use innovatived products or business model, understand market demand, increase service upgrades, and solve customer pain points to fulfill the demand from the markets and buyers to achieve upgrade and transformation strategies.
The practice driven by the spirit of innovation and creativity will experience a
period of painful struggling to support technological breakthroughs in the practice of new thinking at the initial stage. It may be unsuccessful at first and encountered many difficulties, but once a breakthrough is made, many jobs can be created regardless of revenue or cash flow.
In the past decade, the supply chain of the world's factories in the mainland China has been raised up to the markets, making it more difficult for Taiwan's small and medium-sized enterprises to operate. Taiwan government should assist enterprises in their industrial upgrading and transformation, with the spirit of seeking innovation and change, overcoming all difficulties, hiring high-end talents, investing capital and equipment, developing new products, adjusting product strategic positioning, gaining new economic growth points and finding solution for business difficulties.
This thesis uses theories of PEST, Porter five forces analysis, customer’s behavior analysis and SWOT to discuss the strategy formulation, analysis of the case H company and the small and medium-sized technology industry in Taiwan. It is hoped that this research and analysis can provide suggestions for the strategies of Taiwan's SMEs in corporate transformation. |