Taiwan - Economic trends and trade development

Case Studies

Essay 2010 19 Pages

Economics - Case Scenarios



1. Overview

2. ASUSTeK Computer Inc
2.1. History
2.2. Corporate Culture
2.3. Products and Services
2.4. Comments on the business strategy
2.5. SWOT
2.6. Conclusion and suggestions

3. Impressions on visited companies
3.1. Kaohsiung export processing zone administration
3.2. Brother Taiwan
3.3. German Trade Office (AHK)
3.4. Hsinchu Science Park
3.5. Accton Technology Corp


1. Overview

This report will provide a deep view of one of the most known Taiwanese companies called Asus as well as some, in my opinion the most interesting, short comments on other Taiwanese companies I visited during my MBA exchange study in Taiwan. The major purpose for the course “Case Studies” was to understand the major trends in Taiwan´s economic and trade development and investigate the business environment and practices.

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2. ASUSTeK Computer Inc

First company I have visited was the Taipei based computer manufacturer ASUS.

As of 2009ASUS has manufacturing facilities in:

- Taiwan(Taipei,Lujhu,Nangan,Guishan)
- Mainland China(Suzhou)
- Mexico (Ciudad Juárez)
- Czech Republic (Ostrava)

Asus claims a monthly production capacity of two million motherboards and 150,000 notebook computers.

The ASUS Hi-Tech Park, located in Suzhou, China, covers 540,000 square meters, roughly the size of 82 soccer fields.

ASUS operates 50 service sites in 32 countries and has over 400service partnersworldwide. It provides support in 37 languages.[1]

2.1. History

TH Tung, Ted Hsu, Wayne Hsieh, and MT Liao founded ASUS in 1989 in Taipei, Taiwan. All four founders worked as computer engineers for Acer. The name ASUS originated from Pegasus, the winged horse of Greek Mythology. The first three letters of the word were dropped to give the resulting name a high position in alphabetical listings.[2][3]

As of 3 January 2008, ASUS had started restructuring its operations. The company will split into three distinct operational units:

- Pegatron
- Unihan

The ASUS brand will apply solely to first party branded computers.Pegatronwill OEMmanufacturing. Unihan will focus on non-PCmanufacturing such as cases and molding.In the process of restructuring, the highly criticize plan restructuring effectively zeroed out the current pension balances. The company paid out all contributions previously made by employee.[4]

- 2002: Forms subsidiary ASRock.
- September/October 2003: debuts in the cell phone market with the J100 model.
- September 2005: releases the firstPhysXaccelerator card.
- December 2005: enters the LCD TV market with the TLW32001 model, initially only available in the Taiwan market.
- January 2006: ASUS announces that it will cooperate withLamborghinito develop its VX series.
- 9 March 2006: ASUS announced as one of the producers of the firstMicrosoftOrigamimodels, together withSamsungandFounder Technology.
- 8 August 2006: Asus announces a joint venture withGigabyte Technology.
- 5 June 2007: Asus announces theEee PCatCOMPUTEX Taipei2007
- 9 September 2007: ASUS indicates support forBlu-Ray, announcing the release of a BD-ROM/DVD writer PC drive, BC-1205PT.The release of several Blu-Ray based notebooks follows.
- 31 October 2007: Asus launches a PDA/Smartphone range in the UK market
- 3 January 2008: Asus formally splits into three companies: ASUSTeK, Pegatron and Unihan.
- May 2008: Incompatibility of ASUS A8N32-SLI Deluxe motherboard with Windows XP SP3 first discovered
- 12 August 2008: Asus produces a new motherboard (ZT23) capable of clocking a processing speed of 120GHz, a record.
- December 2008: Asus releases a beta BIOS update that potentially fixes the Windows XP SP3 incompatibility with the ASUS A8N32-SLI Deluxe motherboard.

2.2. Corporate Culture

The ASUS brand is founded on four core values known as ASUS DNA. ASUS DNA comprises “the 5 ASUS Virtues of Humility, Integrity, Diligence, Agility and Courage”, “Focus on Fundamentals and Results”, “Innovation and Aesthetics” and “Lean Thinking”. In order to achieve the vision, the employees are encouraged to practice and develop these four foundational “genes”. The vision and the “genes” will be described in the following paragraphs.[5]

2.2.1. Values/Virtues

ASUS places great importance on employee virtues. Five characteristics have been identified as key to the smooth development of processes and relationships. The five ASUS virtues are: Humility

- Show gratitude and have sincere respect for others
- Internalize the company’s processes and possess strong team spirit
- Be sincerely introspective; when facing problems, look into areas of personal responsibility first without blaming others

- Continuously strive for self-improvement with strong self-motivation Integrity

- Be honest, sincere and truthful, and above all, do not attempt to cheat
- Understand and honestly accept one’s own personal strengths and weaknesses
- Develop interpersonal relationships without false pretences Diligence

- Be willing to spend more time and effort and take responsibility in order to deliver high quality work
- Focus on cost and crack down on wastage to “get more with less”
- Take the initiative to pull together every person involved in a project in order to innovate and create maximum customer value Agility

- Be quick to grasp the key fundamentals in any situation
- Be swift in taking the right actions to create winning results
- Be quick in discovering opportunities Courage

- Bravely confront difficulties and face challenges
- Dare to go against the grain, be able to drive constructive dialog in the event of disagreement and stick to doing the right things despite criticism
- Never be hasty in decision making, and execute only after careful thinking

2.2.2. Mission

In Order to achieve the vision ASUS established following areas within its mission.[6] Focus on Fundamentals and Results

In order to accomplish the best possible results, ASUS stresses on teaching employees to “Think Through” the big picture, and focus on the fundamentals and results before execution. In short, they must find out the truePurposebehind any task, and to uncover the root cause behind issues, which will then allow them to do the right thing correctly the very first time. In order to accomplish this, employees must start with thePurposeof the task in mind, approach the situation “from theCustomer's Point of View”, and take “Cost Effectiveness” into consideration while being open to “Alternatives” and acutely aware of “Side Effects”. Innovation and Aesthetics

ASUS also places a huge emphasis on Innovation and Aesthetics. Employees are encouraged to strive for technological and aesthetic perfection in everything they do. They are expected to put themselves in customers’ shoes in order to create more value. ASUS employees are also required to apply “Green-Light/Red-Light” thinking to each situation. Green-Light thinking involves brainstorming, where every idea and proposal is sent to a ‘pool’ from which the best solution is eventually drawn. Red-Light thinking, on the other hand, involves constant questioning and adopting a cautious attitude toward every proposal in order to siphon out the root cause of problems and then subsequently obtaining answers. Through such innovative thinking and experimenting—while mindful of the need to meet and exceed the user’s needs and expectations—employees can then develop products that enhance the user’s overall product experience.


[1] (ASUS, 2010)

[2] (www.wikipedia.de, 2009)

[3] (Kim, 2003)

[4] (Kubicki, 2008)

[5] (ASUS, 2010)

[6] (ASUS, 2010)


ISBN (eBook)
ISBN (Book)
File size
574 KB
Catalog Number
Institution / College
Shih Chien University – International Business
taiwan economic case studies



Title: Taiwan - Economic trends and trade development