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This study analyzes the business model of Company P, a small and medium-sized enterprise. The company is a Taiwanese semiconductor machinery manufacturer that mainly produces fully automatic edge forming equipment, fully automatic deflush machine, multi-function circulating water chiller, and fully automatic leak detection equipment. In response to the price competition among industry peers, shortened deadlines, rapid technological development, and technological integration, Company P shifts its focus from red ocean strategies to blue ocean strategies and emphasizes value proposition instead of price competition. A business model canvas is used to analyze the company’s value proposition in operations, core resources and main services and products, target customer, customer sources, and customer needs as well as to confirm that each component of the business model accounts for various aspects of cost, including revenue sources and financial expenses. Accordingly, this study determines Company P’s core technology position and the potential risks incurred by each operation. Finally, a TOWS strategy matrix is used to analyze the external environment (i.e., threats and opportunities) and internal environment (i.e., weaknesses and strength) of Company P. This facilitates integrated strategic analysis and formulation of adequate strategies. Specifically, the strategy formulated after the integrated analysis is geared to achieve comprehensive performance objectives centered on financial expenditures, income sources, expansion of company size, and reduction of operational costs. Integration of core technology, core resources, core technology and core resources is identified as a key managerial focus. For the business aspect, the company aims to provide customers with a comprehensive one-stop service in an effort to enhance competitiveness in the market.
Keywords: entrepreneurial thinking, business model, TOWS analysis
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