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Small and medium-sized companies have dominated the business in Taiwan for years. In the early 1970s, because of the effort of the government’s policy, there were a lot of promising workers who decided to join the manufacturing industries. Back then, the downsides of Taiwanese manufacturing industries were lack of the raw material, technique, and market. So due to this situation, people chose the lowest barriers to entry goods such as umbrella, ready-to-wear clothing, footwear, and bags, etc.
However, after twenty or more years of rapid development, a lot of companies began to relocate their factories due to the labor cost and the change of government’s policy. Since 1987, Taiwan’s traditional business has almost become offshoring completely and grew as large-scaled companies with thousands of employees. Even though these companies mainly sold low-profited goods, they hit billions of dollars in revenue. Their success is worthy of taking a look at in terms of the choice of business, business model, customer relationship, product target, the innovation of technology, human resource strategy, government policy, family business, environment, safety issue, and health policy. Apart from these, there are also non-economic factors such as politics, pandemic, trade friction, financial planning, and life values that are needed to be considered.
After half of the century of development, there were some successful stories, yet there were also some failures. This paper will discuss the footwear industry and its related business to see how to make the proper transformation timely so that company could continue to thrive. The discussion will target at tackling on the frequently encountered problems to help the entrepreneurs avoid these potential issues. |