Study of Emerging Market Entry Strategy: A Case of Using Taiwan Machine Tool Manufacturer’s Entry into the Indonesian Market
Over the past decade, Mainland China’s economy has developed rapidly. By emulating Taiwan’s experience, Mainland China’s machine tool industry has been fast accumulated growths. Its supply chain has been firmly established and it has transformed into one of the fiercest competitors for the Taiwan machine tool business operators. On the other side, Mainland China’s labor costs have risen sharply, causing Taiwan’s machine tool industry to face difficulty in its business operation. At this juncture, the Association of the Southeast Asian Nations officially started talks of a Regional Comprehensive Economic Partnership (RCEP) in 2013. It would become the largest scale free trade partnership in the world. As Indonesia is the biggest economy in South East Asia, the potential business opportunity is enormous.