Abstract
Taiwan Financial Holding Company's Strategies and DeploymentStudent: Chi-Wei Lin Advisor: Dr. H.G.ChenInstitute of Technology Management National Tsing Hua UniversityBy using the case study methodology, I took a foreign financial holding company as an example to study their experience in executing their development strategy. I used the theories of strategy, innovation and management to study the Taiwan’s financial holding company and analyzed their development, core competence and future target based on following four dimensions: Scale, Operating Strategy, Marketing Capability, and Competitiveness. Besides, I also studied how a merger between financial holding companies would influence the whole financial market, and what would be the CEO’sfuture strategy and innovative vision to lead the company to operate outside of the Taiwan market and to take the advantage of the mainland China economic growth. Through the research of documents, individual interview and domestic/foreign cases study, I got following conclusions:(1) From the index of Scale, the big financial holding company would be easier tosurvive in Taiwan. After merging, the holding company should focus on high profit market especially the wealth management. Besides, considering the best competitiveness and sales performance, a private holding company should merge with the state-run holding company to get the best benefit.(2) From the index of Operating Strategy, taking life insurance as the main operating entity would perform best. Besides, diversification business with some core technology and ability would succeed more easily. (e.g. Citigroup, HSBC).(3) From the index of Marketing Capability, sales channels, market share, ability of wealth management, image and the integration of information systems would be the most important marketing capability in the future. Besides, product innovation and niche maket differentiation by using the market strategy of EOR (Era of Relationships) would beneficially promote the marketing efficiency.(4) From the index of Competitiveness, priority, reginal coopration, information integration, competition stategy, internationalization would be the main conditions to be competitive in the market. Using the scale of economies, diversification, differentiation and innovation to strengthen the competitiveness in the market would be the best way to compete with other international companies.In addition, my suggestions for future operational strategy and positioning in the economic area of mainland China are as below: the keys to get future success are large capitalization, integration ability of enterprise resources and marketing channels. However, to the small-scale Taiwan financial holding companies, they could consider to merge with Hong Kong financial holding companies especially with the ones who have already had branches in the mainland China. So, to merge domestic financial holding companies, enlarge the scale, increase the profititability and competitiveness in advance are the most important ways to increase a financial holding company’s actual strength to gain a foothold in mainland China. I hope this research could be a good reference for the field of financial holding business and also for the follow-up study.