Sport for All, Sport Forever TAIWAN’S SPORTING GOODS INDUSTRY ANALYSIS GEORGE WOOD 吳日盛 1958/12/02 Profile: Victoria University Switzerland Ph.D. Candidate TBS Group Corporation Chairman DFS International Corp.(Boston) President T-Zone International Inc.(New Jersey) President Inti - Education Group Executive Supervisor TSMA………………………………………Executive Supervisor (TSMA - Taiwan Sporting Goods Manufacturers Association)

Taiwan’s sporting goods industry History and Development Tendency 1970, Developing export trade. 1979, Providing OEM manufacturing services for leading brand name companies. 1980’s, Developing labor-intensive and low value-added products to fill a leading role in the worldwide sporting goods industry. 1990’s, Proceeding industry upgrade and relocation strategies. - Designing and developing high value-added products in Taiwan. - Moving labor intensive and low value products to the regions with lower labor costs, such as Mainland China and Southeast Asia. 2000's, After adopting relocation strategy, local corporate producers have gradually appeared to be the more threatened competitors. After 2005, domestic companies are expected to confront the next wave of drastic competition. At present, 90% of the sporting goods are still made for exportation.

Taiwan’s sporting goods industry

Taiwan’s sporting goods industry

Five Forces Analysis

Five Forces Analysis

Five Forces Analysis

SWOT Analysis

SWOT Analysis

Taiwan’s sporting goods industry Conclusion and Recommendations A. Expanding marketing channels - Establishing production and marketing bases in the primary export markets such as Europe and the US. - Adopting local brand strategy to create a brand-name image. - Conducting the perception by existing channels to extend the present products integrated with advance technology. - Involving in the end user sales service system to build up a resource co-sharing entity with importers or local wholesaler and even magnify the effect of bilateral balance. B. Jointing purchasing and resources manipulation - Economy scale -- Reducing raw material costs. -- Enhancing bargaining power. - Small and medium enterprises possess the characters of flexibility and rapidity. Under the networking tendency, natural resources and manpower specialties of various countries should be nimbly used to enhance the operational functions and strengthen competitive advantage.

Taiwan’s sporting goods industry Conclusion and Recommendations C. Accelerating the automation - E-commerce application programs/EDI Internet /Networking -- Increasing production efficiency. -- Decreasing operational costs. D. Increasing the potential of research and development - Keeping core competitive advantages such as R&D design in Taiwan to produce high-quality, superior products. - Adopting reverse thinking based on viewpoint of consumers to carry out R&D. - Seeking producers in low-cost nations to manufacture low-end items. - Based on the experience of one’s own industry, it is easy to form a specialized bias. Enterprises should get rid of the confined concept of existing products and markets in order to build up the non- existing products and markets or even extend the scope of products to create added value and innovative value.

The End Thank You ? ? ?