Growth Strategy of Taiwan’s Giant Manufacturing Co. Ltd

Abstract

Taiwan’s Giant manufacturing company (GMC) appeared as a start-up company with original brand at the end of the 1980s, becoming the world's largest sports bicycle manufacturer in the early 21st century. It enhances its presence in the global race scene, including the world's highest bicycle race, Le Tour de France, competing with prestigious European and American bicycle companies. Contrary to the fact that Japanese bicycle companies and many manufacturers were inferior to product technology or comprehensive technology despite being superior in element technology, at the same term. GMC continues to supply highly competitive products worldwide although it does not have sufficiently advantage in element technology. This paper considers success factors in the growth strategy of GMC.

Based on the two concepts of “product complexity” and “production of key parts inside or outside” in assembled products, the bicycle industry, which has low complexity and externally produced key parts, is compared with the automobile industry and PC industry, it is relatively easy to deploy to OEM and ODM. This point is similar to the PC industry with superiority in Taiwan.

Furthermore, looking through the value cycle model, the factor which succeeded in deployment to OBM becomes clear. Firstly, GMC has targeted emerging customers (amateurs seeking high performance and high quality but asking for reasonable prices), which are different from the customer target which the conventional prestigious bicycle companies assumed. And GMC are suitable for them thorough pursuit of high quality and rational products, low cost mass production system. There is the essence of GMC innovation, there is the structure of competitive advantage. Strategic management by the two top managements who made this change possible, Liu and Luo have been the driving force to build a competitive advantage.