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Information of hay industry was not easily to get and reach in past years, however, following with spring up of the Internet in recent years, any information about hay industry has become very easily to reach and suppliers easily to find where the customers are by Internet. Nowadays there is nothing can be secretive especially in the hay industry. Compare market size with other countries, Taiwan market is comparatively smaller and full of violent competition as well. As the reason leads to Taiwanese hay buyer always seeking the hay which is less cost but must be higher valued and quality, at the same time, they may overlooked the principle “ You get what you pay for ”, thus, that is why they are easily for suffering loss in quality and always dumping price for selling. Furthermore, there were many new companies trying to get in this market in past few years and most of them were always take low price strategy for grabbing as more market shares as they can, facing with may negative factors in the market, not only market prices have been brought down and destroyed and also caused that habits of customers’ consumption has changed a lot and become not loyal anymore. Besides this, as to buying material, uncompetitive market price will make all of Taiwanese hay companies at an extremely difficult position to compete with other countries for hay buying in the international market. That will lead Taiwanese market become to marginalization in the world.
This research at first will use Porter Five Forces Analysis for analyzing the profitability of the hay importing industry in Taiwan, and then use SWOT analysis for analyzing case company internal Strengths and Weaknesses, and also external possible Opportunities and Threats. At last, we will outline a map of Value Net and analyze with Co-operation Strategy to run for possible strategies to make some changes of the game they were in and find additional values they could increase and add for as well.
This research based on case company who located at low industry entry barriers and highly competition market, analyzed its positions of customers, suppliers, competitors and complements in the Value Net and find ways for changing the game. Whether more players input and add more value on company and their products, or run loyalty plans with suppliers and customers, or even create different business and marketing rules, truly hope that could help the case company to figure out more creative business patterns for sustainable operation.
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