The Strategies of the Manufacturing Service Industry: The Perspective of Value-added Chain Model

Abstract

Many manufacturers are transforming into manufacturing service industry to enhance their value creation. By adopted the value-added chain model, this study conducted four case studies, including Acer, Giant, TSMC and Eternal to verify the high-valued strategies and the common characteristics of service provisions. Specifically, these companies are selected from different industry and value chain position to enhance the robustness of the research findings. This study concluded that the manufacturing firms strengthen their position as system integrator. The provision of high-valued services is orientated toward the integration of the value chain stages according to the industry and business model. The companies are going to upstream or downstream, outsource non-core manufacturing activities, and sell some manufacturing assets. The high-valued service strategies provided the manufacturing firms with new approaches to compete in a rapidly changing economy. The findings also provided the direction for the emerging economies in confronting with industrial structure transformation.