The Strategy of Taiwans Latecomer Firms to Gain Competitive Advantage Article

The Strategy of Taiwans Latecomer Firms to Gain Competitive Advantage - Article Example It is evidently clear from the discussion that Taiwan together with South Korea, Singapore, and Hong Kong form part of the four newly industrializing economies (NIEs) of East Asia that have rapidly risen over the past few decades to become major global economic powers. Despite being latecomers in the region, many firms in Taiwan have gradually developed their innovation capabilities within a short span of time to become major rivals to the well established multinational corporations (MNCs) from Japan, Europe and America. The spectacular success of the Taiwanese firms in overcoming latecomer disadvantages and catch up with early movers is largely attributed to their successful application of a mix of corporate strategies designed to enable them to overcome entry barriers and gain competitive advantage. As Asia continues to take over the global economy, there are some issues with regard to how the firms in this region are able to compete in the global market. Specifically, the firms th at have entered the Asian market late have even more challenges with regard to catching up with those that are already established. These firms are called latecomers and have many challenges with regard to entry and how they are able to keep up not only in the global arena but also with the other giants in the local market who are already established. One such area that these firms seem to be lagging behind in the area of technology acquisition. Latecomers in the Taiwanese market have to deal with the fact that technology in this region has not matured like in the west. How these firms decide to use a specific strategy for transferring the technology is determined by the business strategy they use.