Looking into the market conditions of the world machine tool industry, the fluctuations in the industry are caused by a decrease in demand as a result of the economic cycle fluctuations of advance industrialized countries. Moreover, China will become a world factory in the future, so the cluster effect of the manufacturing industry can be used to analyze the growth of the machine tool market in the future.
As the world's focus is on the China market, how Taiwan, the world's second largest importer, with the control of most of the advantages, can put itself into a position that cann't be challenged and also establish a second production base will be the major focus for business strategies in the future.
This study will primarily be based on the market position of Taiwan in the China market, and moreover, the adjustments are made by other competitors and China, and changes in the market demand are observed, so as to provide suggestions for strategy management. The first this study starts from the current status of the world machine tool market demand, and through the market status and demand distribution, Taiwan machine tools achievement in the world market will be analyzed. Lastly, through an understanding of the developmental status of Taiwan machine tool industry, operations arrangement and trends will be outlined. The second of the study is on the China market. Beginning from a general understanding of the demand in the China machine tool market and the developmental status of China machine tool industry, together with the status of international machine tool corporations in the China market, the market segmentation between Taiwan and other countries in the China market will be compared.
Then, based on the China market, the challenges that Taiwan machine tool industry has faced amidst the regional competition will further be analyzed. First, the competitiveness of Taiwan machine tools will be analyzed from the perspective of market shares. Among these competitors, the most notable threat to Taiwan industry is from South Korea and China. As a result of this, in the analysis, the threat from South Korea and China to Taiwan machine tools industry has been further studied, at the same time looking back at the key factors of Taiwan industry that are to be currently overcome amidst these threats in Taiwan machine tool industry.
Amidst the great business opportunities and challenges in the China market, starting from the market conditions of the China market and Taiwan machine tool industry, this study compares the advantages and disadvantages across the Taiwan Straits, from the perspective of factor conditions, support systems, market demand, policies, laws and regulations, etc. and then derives how the value systems of the industry cooperate with the environmental conditions of the industry development, with the hope to boost the added values of Taiwan machine tool industry.