|
The industrial environment in Taiwan changes tremendously, including the increase of land and labor cost, as well as the elevation of environmental awareness. Enterprises are getting more difficulties to do business. Simultaneously, Mainland China is taking more open economic policies which make China market has a deep domestic market that attract Taiwan enterprises to invest in the new market. There’re many IT enterprises transfer investments to Mainland China with different entry modes. Some are with perfect performance but others aren’t. Most Japanese enterprises close the subsidiary in Taiwan, and enter the new market in Mainland China directly by parent company in Japan.
This research emphasizes how Japan Sanyo semiconductor company takes the subsidiary in Taichung as the stepping-stone to the Mainland China market. Because the short culture distance, shared language and race between the two countries. We investigate the performance from three production sites in Mainland China. Also we use Sanyo in Taichung to exemplify how could the subsidiary become the parent factory of the China market. In the aspect of assessing the investment environment, the author uses personal experience to record the whole process truly and detailed in order to externalize the tacit knowledge.
This study analyzes how the Sanyo semiconductor company takes offshore subsidiaries and subsidiary in Taichung as the stepping-stones to the Mainland China market in the cause of shortening the culture distance, decreasing cost, and entering the market quickly. Otherwise, we discuss the distinctions between different entry modes and location options in the Mainland China market. The objects of the study include Shekou Sanyo, Dongguan Sanyo, Suzhou Sanyo, and Taichung Sanyo.
In the first stage has been cited the related literatures Among FDI theories. Secondly, we use case study to consider how the strategy changes in order to transform from offshore subsidiary, assess the Mainland China market, choose location, and make decisions. Thirdly, we use in-depth interview to explore the different decision factors between locations options and environment assessing
|