Abstract
In light of the increasing globalization of the economy, an era of slender profit in many industrial markets has appeared before us. Numerous corporations world-wide have been continuously searching for ways to reduce production cost in exchange for its competitiveness; and the industry of manufacturing is on top of the list. Facilitating reduce cost while maintaining competitiveness have directly impacted Taiwan corporations. While the convenience of mainland China’s low labor and land cost has become an easy solution to the problem, this solution does not appear as simple as it looks; cheaper labor and land cost does not always equal to competitiveness.This research indicates several examples from manufacturing corporations in Taiwan and Hong Kong. The research consists of a compilation of a collection of data in each targeted corporation’s operational behaviors. These data was analyzed utilizing Michael Portal’s Value Chain theory to come up with a comparison analysis between these corporation’s value activities. Base on these findings and cross analysis, targeted corporation’s operation strategy and attitude shall be observed in contrast to the resources in mainland China. This will enable us to conclude the source of corporation’s cost advantage and differentiation, which can hopefully provide some implications to those who are under pressure.While conducting this research, we discovered the targeted corporations recognize that reducing cost is the fundamental principle for survival. Thou it is a necessity, however, the corporative behaviors of management and decision-making members are the key to the actual expansion and existence. In view of a successor, the trend of a globalize economy is a full spectrum where mainland China’s low cost is only a part of the global resources; corporations shall not be limited locally despite the importance of globalizationBase on the value activity and logical assumption, the conclusion on this research on the strategic trends of Taiwan and Hong Kong companies pertaining to its operation are presented as follows:1.Industrial resources and value activities created by effective operation and management have a greater value than lowering production cost2.Due to influences of external environment, Taiwan corporations have cost advantage where Hong Kong corporations have differentiation advantage.