Abstract
AbstractThe diabetes has already become the seventh cause of death in the world with 7.3% of annual growth. It is estimated that the patients will reach 380 million by 2025. The market value of the global blood glucose monitoring is also increasing continuously with 11.2% of annual growth, and it is estimated that the market value will exceed 9,700 million in 2009. The idea of preventive medicine has already been accepted gradually because of the growth of ageing population, and the business value comes from the blood glucose detection is huge. But about 96% of the detection market of the world at present is controlled by the top five companies: Roche, J&J, Abbott, Bayer and Kyoto Daiichi.The geographical density of Taiwan’s blood glucose monitoring (BGM) manufacturers is the world No. one in 2007. Taiwan has become one of the most important players in the BGM manufacturing in the world. One of the reasons for the clustering effect comes from the historical development of ICT industry. Compared with big BGM players acquiring core technologies through M&A, Taiwan’s BGM players often choose Me-too products as their entry wedge. In the long round, Taiwan’s BGM players must acquire core technologies in order to gain competitive adventages.The study finds: The ternd of vertical disintegration for the big BGM players and vertical integration for small ones. The well established supply chain systems of ICT industry in Taiwan impose great opportunities for Taiwan BGM players to enter OEM and ODM businesses.According to the concept of the「Smiling Curve」proposed by Mr.Shi, me-too products provide the least value added for manufacturers in Taiwan. This study proposes that BGM players in Tawan must have the capability to differentiate their products to gain competitive adventqages in the global market. The capabilities include: core technologies construction, supply chain management, operation efficiency improvement, service quality improvement and so on.