The development of engineering business enterprises in Taiwan began around 1960 to meet the demands of economic development. In the early days, the majority were judicial organizations with government involvement, their growth were slow and small in operation scale. It is only in recent years that few engineering enterprises became capable of handling complete facility turnkey projects, and be able to participate in larger projects internationally.
The so-called “engineering enterprises” in the early days were a blend of engineering consultants and constructors. The services provided by both entities are oriented toward public works. The engineering consultants would be responsible for engineering planning, design, supervision and tender administration. The constructors would be responsible for supply of materials and construction works.
This research is a case study of the business strategy of a turnkey engineering enterprise in Taiwan. The subject enterprise is the only full engineering, procurement and construction service turnkey enterprise domestically. Relevant literatures, both locally and abroad, were reviewed and discussed, and, senior management of the subject enterprise interviewed. The industry in which the subject enterprise operates and its competitiveness were analyzed. Research findings were collated and discussed. Eight conclusive points and eight recommendations were tabled for the subject enterprise. This report provides a reference for domestic turnkey engineering enterprises in drafting their business strategy.
Eight conclusive points were raised: (1) success comes from seizing internal and external environmental opportunities, more importantly is to have core competitive strength, (2) a superior business culture nurtures superior staff, (3) growth is derived from a long term loyal relationship with clients and subcontractors, (4) adopt key diversification strategies with high probabilities of success, (5) oligopoly of domestic market and competition in the international market, (6) participation of renowned international enterprises in the domestic market will enhance the competitive advantage, (7) attaining accreditation of ISO management system facilitates entering the international engineering market, and (8) the next five years are great opportunities for the subject enterprise to grow domestically and internationally.
Eight recommendations were made to the subject enterprise: (1) acquisition of upstream product processes and patents, (2) adopt a product concentration strategy in the international market, (3) adopt a ward-off strategy in the domestic market, abandon the medium and small competitors, (4) development of new products and branch into new discipline, (5) elevate working level and expand operations, (6) expand international market, promote international exposure, (7) focus more on product R&D and quality, and (8) adopt a water reservoir management method.
Two suggestions for future research: (1) comparative study of business strategy of internationally renowned engineering enterprises, and (2) risk management of turnkey projects.