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Although there are many large enterprises in advanced countries, small and medium enterprises are still dominant in number of enterprise. Therefore, countries attach great importance to protect and reward the development of small and medium enterprises. The first chapter analyzes the number of enterprises in Taiwan, the number of employees, the statistical analysis of output value to indicate the importance of small and medium enterprises in social stability and development.
Secondly, in last decades, Taiwan passed energy crisis, financial crisis and political conflicts owing to government’s policy, diligent Taiwanese and most importantly, stable jobs provided by small and medium enterprises.
The case in this paper is one of the typical small and medium enterprises but also categorized in Taiwan's most important industry, Electronic Parts and Components. From the study, growing process and influence of small and medium enterprises is elaborated. Furthermore, the paper describes how small and medium enterprises varied strategies when facing changes of environment. These strategies are significant foundations of small and medium enterprises to the road to become successful large companies.
With the rapid development of Taiwan's economy, companies confront new challenges and difficulties. Southern Strategy or Western Strategy is often taken by local firms in last two decades. As the result, this study will put attention on investigating success and failure in different strategies. Last of all, in case study, this article also shows that when the environment changes, enterprises cannot only adjust business strategy but also follow worldwide trend to innovation. The study is to investigate the development of small and medium enterprises in the past, now and future.
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