||The era of globalization and knowledge-economy has become the trend of the world. The enterprise faces such environment must consider the way how to maintain the competitive advantage. The way of the competitive advantage can adopt global logistics which transfer some department to relative advantage country in order to improve it’s productivity. |
In1987, the Government released the law about restricting people to contact between Taiwan and China, and the trade between Taiwan and China became more and more important. With the trend of economic community in globalization and the industrial environment that changed in Taiwan, the Taiwanese firms should think more about how to keep advantages in global competition. Internationalization is the best choice that can help Taiwanese firms promote their competitive position in the world. China is a developing market and having a lot advantages, such as rich resources and cheaper labors. In a word, China has become the major location of Taiwanese firm’s foreign direct investment.
Before setting up a plant,the enterprise needs to know why they try to do that? First, if they just do a trial investment, build an offshore factory is enough. Otherwise, the enterprise not only loss the capital and then will hurt the assets of headcompany. Until the branch is operated steadily; or finding another nich. Enterprise could invest more resource and change the invested way to other type such as resource plant model, contribution plant model, front plant model or leadership plant model.
The purpose of this thesis is to study if the enterprise builds new plant should consider which relative plant location. These factors provide a building new plant decision-making and investment referential framework. In other word, through this way the enterprise acquired the lowest cost and improved the sustainable competitive advantage. According to scholar’s research, the factor of plant location includes: cost, infrastructure, business service, labor, government, customer/market, supplier / source, competitor. If we analyze quantity and quality in these factor that discover some signification such as the labor, infrastructure, government. From the environmental factor aspect (such as plant size, industry), the enterprise emphasize labor, supplier’s factor that will set up plant in Taiwan; Otherwise, the enterprise will set up plant in China when it enhances the customer and market.
Finally, we give some conculsion and suggestion.