1 AIT Asian Institute of Technology

Corporate strategy in a tool company -- a case study of Toshiba Tungaloy (Taiwan)

AuthorLin, Po-chiung
Call NumberAIT RSPR no. SM-01-39
Subject(s)Business planning--Taiwan

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-01-39
AbstractToshiba Tungaloy (Taiwan) is one of the leading drill makers in Taiwan and China. As China PCB (Print Circuit Board) has become the No.4 market, after USA, Japan and Taiwan, in the world. This market is getting important for Toshiba Tungaloy. However Toshiba Tungaloy (Taiwan) has faced the strong competition from its rivals. In this case study, SWOT analysis and TOWS matrix have been used as tools to formulate strategies for Toshiba Tungaloy (Taiwan). Basically, the case started from external environment analysis and then followed by internal enviromnent analysis. Some external environment factors are the opportunities for the company such as the stable political enviromnent. It will keep the economy growing. China will enter WTO soon. It may build up the relationship between China and Taiwan. In Taiwan the BGA (Ball Grid Array) market is getting better as well. However, the messy legal issues may create confusion for the foreign companies in China. The rivals of Toshiba Tungaloy (Taiwan) have moved to China as well. It will continue the price reduction pressure for Toshiba Tungaloy in the future. Laser drill has replaced some traditional drills for the communication board of PCB. Toshiba brand image is one of the competitive advantages. Large purchasing order form top PCB/BGA makers will keep the stable order and important marketing infonnation gathering from its customers. The strong technology support from Toshiba Tungaloy (Japan) is another strength for the company. The zero stock policy may cause the shortage for the customers. The company focuses on the top PCB/BGA makers. When the demand for them are decreasing during the off peak seasons, the company will have the sales problem. Right now there are few managers in the company and there are two management systems in Xiamen plant. Toshiba Tungaloy (Taiwan) is still using the solid one material, which is more expensive than the semi-solid and stainless connected material. The TOWS matrix has provided alternative corporate strategy for Toshiba Tungaloy (Taiwan). The growth strategy would be the selection. Some recommendations for the company are the followings. Toshiba Tungaloy (Taiwan) should apply new product or modified product for the customers. It should also gradually use the stainless connected material. As the company is growing and expanding to international market, it is time for the company to select more staff/managers for marketing, production, iii quality control and human resource. It is safer for Toshiba Tungaloy to have more customers, because they can provide the constant order when the demand from the major customers are slowing down. It is important to clarify the responsibility in Xiamen plant. Two management systems are being practiced side-by-side and because this, there is conflict and confusion.
Year2001
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-01-39
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, J.C.S.;
Examination Committee(s) Sununta Siengthai ;Bechter, Clemens;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001


Usage Metrics
View Detail0
Read PDF0
Download PDF0