Abstract
Abstract This thesis focuses on the case study of fiberglass industry in Taiwan. Through understanding the characteristics of product application, the trend of product development, and the industrial structure, the overall strategy and the outcome in the companies of Taiwanese fiberglass industry will be analyzed. Mainly, public information is quoted as well as the proof of theories and previous studies to probe into the situation of bullwhip effect happened in fiberglass fabric industry. A case study of management practice and strategy will be included in order to analyze the cost structure between fiberglass fabric and yarn as well as the effect of vertical integration in competitiveness in the fiberglass industry. From the point of view of the fiberglass industry, this thesis tries to research the following questions and provide suggestions. In an industry, how should one cooperate with customers whose clockspeeds are faster? When economic environment fluctuates severely, how should the company in an upper position in a supply chain deal with the bullwhip effect? What strategy should be adopted to overcome the high material cost in the fiberglass fabric industry? Besides, this thesis also tries to discuss the issues, for example: how does a company which is under the pressure of environment protection problem and does not have sufficient financial ability to support a strategy of backward integration, that impact a company’s competitiveness. This thesis has following conclusions. Vertical integration in the electronic fiberglass industry has the effect of stabilizing material supply and reducing costs. However, a fiberglass fabric weaving company must also devote itself to R&D, process improvement, cost reduction, warehouse management, and sales to compensate for the bullwhip effect, especially the relationships with the back and forward partners in the chain since every function is an important part in gaining the competitive edge. The cost and synergy of integration must be considered when adapting a vertical integration strategy to meet the company’s necessity and capability. This is the way to survive in an economic downturn. Keywords: Vertical Integration, Bullwhip Effect, Competitiveness, Supply Chain Management, Clockspeed