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On the Entry to Mainland China of Taiwanese Cement Industry: Case Studies of Taiwan Cement Corporation
and Asia Cement Corporation
Cement industry,Entry mode,Collaborative strategies,Internationalization motivation,Foreign direct investment,
|Publication Year :||2016|
Taiwanese cement manufacturing industry has successively experienced the development in a hundred years. It plays a decisive role in Taiwan economy and the construction development. As Taiwan has gone into the developing country, different kinds of reasons made the consumption of domestic cement productivity recessionary; for instance, the government didn’t give fresh impetus to major public construction as well as the limestone mining rights in western Taiwan have been expired since 1997 and due to environmental protection factors, it is hard to develop mining and raise cement productivity in eastern Taiwan. Under these circumstances, Taiwanese cement enterprises need to find the potential development in the future. Besides, Mainland China has gone through the reform and opening-up in the last thirty years, due to this rapid development, Mainland China has risen up highly cement demand from infrastructure. However, in the initial stage, the industrial foundation was weak and still lack of new technique for cement production. To accelerate the new technique of development, Mainland China needed to adopt reform and opening-up policy. Taiwanese cement enterprises had grasped this opportunity which provided from local government with many preferential policies and high-quality limestone mineral source. Therefore, Taiwanese cement enterprises such as Taiwan Cement Corporation and Asia Cement Corporation have made plans to expand their long-term investment in the Mainland China market based on their plentiful funds, superior production technique and experience of management. Therefore the government has allowed a succession of economy activity such as factory investment or to merge the local enterprises and make them open to public access since 1993.
The main purpose of this study is about Taiwanese cement enterprises seeking for better investment opportunities in Mainland China in order to create their enterprise growth and also to maintain their Taiwan development experience. Furthermore, this study investigates Taiwanese cement enterprises’ business mode for get into the Mainland China market and the collaborative strategies in the last twenty years. In the meantime, this study also discusses the effect of Mainland China economy development policy toward the direction of operation and the strategy adjustment in the future. And to expect this study can apply a suitable development mode for Taiwanese cement enterprises to establish management ability and strategies for their sustainable development in Mainland China.
The results in this study show as follows:
(1) In the early entering stages, Taiwanese enterprises had set up productivity on their own and had used merger and acquisition for expanding productivity and controlling raw materials.
(2) To avoid marketing conflicts, the enterprises would adopt collaboration with the regional and local same trades.
(3) Enterprises should follow Mainland China 13th Five-year Plan and use the Belt and Road strategies to expand new overseas markets.
(4) This study suggests that Taiwanese enterprises have to examine the competitive environment in Mainland China and then to undergo integration or to set up common investment mode in order to achieve the top 10 in Mainland China. All of these will make the Taiwanese enterprise to acquire long-term competitive advantages.
|Appears in Collections:||國際企業管理組|
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