Home Products Reports Innovation Product Buyer Services About TSMA
Contact Us    
 
  繁體中文 | 日本語
   
  Member Login
 

   
  Ebook
 
 
     
  Exhibitions
  FIBO@business 2020
  ISPO Munich 2021
  Taiwan International Fishing Tackle Show 2020
  Medical Japan 2020 Tokyo
  SPORTEC 2020
   
  Corporate Social Responsibility
  Links
  Member CSR News
   
 
 
 
 
 
 
 
 

 


Feature report 2009 | The Study of Key Factor of the Operation of Fitness Equipment Industry in Taiwan

 

 

 

Abstract
Taiwan's industry in the face of global competition, resulting in lost their past competitive edge gradually, as well as resulting in drastic changes in the industrial structure, Taiwan industry manufacturers must accept the internal organization operating pressure and external pressure of competition challenges, through appropriate research methods of analysis the internal and external environment, business strategies expecting the key factors can be found, and create higher value and stronger competitiveness. The non-unitary enterprises and interview approach, but corporate executives, research institutions and academics expert advice and theoretical research results after then with the expert analysis of the survey of manufacturer census in the whole enterprise.
Empirical found that the external environment, the internal environment and business strategy are positively correlated with key factors, and the external environment could significantly affect the internal environment, the business strategy and the key factors, external on key environmental factors have a significant effect. What's more, the internal environment has significant effects on the business strategy. The internal environment has no significant impact on the key factors and is significantly affected on business strategy to the key factors. Based on the research findings of scholars, combined with fitness equipment industry characteristic, obtained six dimensions of fitness equipment industry, by factors of this extraction six dimensions, namely " brand circulation", " product diversity "," human resource training "," advertisement "," stable materials "and" innovation reengineering. "
Keywords: External environment; Internal environment; Business strategy; Key factor

 

1. Introduction
In the Olympic Charter mentioned "Sports is the campaign of human rights, in accordance with each individual should have the opportunity to participate in the needs of the individual sports" (the Chinese Olympic Committee, 1999). As technology advances, as well as the upgrading of living standards, sports goods and correlative industry also conform to this trend, spread around the world, Taiwan ranks gradually global fitness equipment industry supply chain of key position. But fitness equipment industry is in the face of global competition, resulting in the gradual loss of competitive advantage in the past, but also the industrial structure radical changes, businesses must be accepted the internal and external pressure and the challenge of competition, through appropriate research methods to explore the fitness equipment manufacturers operating key factors to create a higher value and greater competitiveness.

 

2. Motives and objectives
According to the whole of 2006 exports from Taiwan Goods Manufactures Association (TSMA), the export sports goods in Taiwan in 2006, amounting to about 1.424 billion US dollars. On the product category, the amount of fitness equipment exported from the previous year (2005) was the second largest, jumped to first place, amounting to about 431.67 million US dollars, the first time exceeded outdoor supplies (387.87 million US dollars), as following Table 1 shown. Due to the globalization trend makes the re-allocation of resources of the whole industry as well as the industry environment of rapid change, make the competition of business more intense, while Taiwan fitness equipment manufacturers usually lack of human resources, technical, financial, managerial expertise, and other resources, the general business model is in the industry value chain plays an role as large enterprise manufacturing and supply source or become an international Original Equipment Manufactures (OEM) manufacturers. Therefore, Taiwan's fitness equipment manufacturers under the environment of lacking various business resources, with what the business strategy and the characteristics of key factor make the business success and come to the fore in the world arena, is the motivation of this study. The purpose of this study can be summarized in the following three points:
a) To study the key factor of the fitness equipment industry.
b) To study the relationship among the external and internal environment, operational strategy and the key factor in fitness equipment industry.
c) To study how the external and internal environment and business strategy affect the key factor in fitness equipment industry.

 

3. Conceptual Model and Hypothesis
This study based on Porter (1980), "Competitive Strategy" on the "The analysis of industrial environment and competitor " according to the degree of concentration of industries, maturity and international competitiveness of the size, was divided into five categories, and Taiwan fitness equipment industry belong to the "Fragmented global industry" (Shi Qingtu, 2005). Porter (1985) hold that business strategy includes three models, namely, a comprehensive cost leadership, differentiation, and centralization strategy, and pointed out that vendor can bring competitive advantage by any kind of these three strategies. Wernerflet (1984) put forward the "Resource-Based View" that considers to make strategy from the perspective of resources, which is a more efficient model than traditional model taking requirement of product as a strategic consideration. Aaker (1984) thought that competitive advantage should cover the concept of critical success factor. Grant (1991) put forward the "Resource-Based View of the strategy of integration framework" for the development of business strategy. Daqian Yanyi (1989), in his book -"Strategy - Wisdom ", put forward the two dimensions and four strategies of "positive competition" and "product innovation". Aaker (2005) holds that the internal and external analysis helps enterprises make strategy. Therefore, the combination of these scholars' theory and research findings, inferences that there is a link among the external and internal environment, business strategy and the key factor, and put forward the research framework as the following Figure 1 below.

Therefore, according to the purpose of the study and the conceptual model, and taking into account the relevant literature and the theory and research results of scholars put forward the following research hypothesis.
H1: There were significant positive correlation between external environment and key factor.
H2: There were significant positive correlation between internal environment and key factor.
H3: There were significant positive correlation between business strategy and key factor.
H4: The external environment has significantly difference to internal environment.
H5: The external environment has significant difference to business strategy.
H6: The external environment has significant difference to key factor.
H7: The internal environment has significant difference to business strategy.
H8: The internal environment has significant difference to key factor.
H9: The business strategy has significant difference to key factor.


4. Methods and Results
This study uses variables to factor analysis to extract the dimensions of variable factors, using Cronbach's value to discuss the scale and dimensions of the factors reliability, and by factor load quantity and the correlation coefficient to check the construct validity of the questionnaire and carry out typical correlation analysis to verify the linear combination relationship between each variable and key factor, and the application of regression analysis to identify factors affecting key factor to verify the support degree of the information on the samples of this study to the hypothesis.

In accordance with the Taiwan Goods Manufactures Association (TSMA) investigation and the information provided by Likert 5 metric pre-test questionnaire method, the effective recovery of 91.66% and Cronbach's 帢 values were higher than 0.7. And the formal questionnaire used mailed questionnaire survey in mid-July to Mid-August 2007, a total of 222 questionnaires were sent out, 72 callback, and the recovery rate was 32.43%, after the deletion of questionnaire which with too many omission or too concentrated answers or without detailed questionnaire respondents, the actual number of valid questionnaires callback amounts to 60, and the effective callback rate was 27.03%.
The SPSS10.0 version of this study used statistical software for statistical analysis, the results showed that the internal and external environment, business strategy and the Cronbach's key factors were higher than or close to 0.7 standard requirements of the Guielford (1965), showing a certain scale of questionnaire reliability, with dimensions of the factors consistency and stability. With the factor analysis for collected samples, extracted six dimensions from the external environment, were followed as "government measure", "market information", " material price", "customer behavior " "integration with the industry", "replace threat ", and the internal environment extracted the four dimensions of the" research and innovation "," marketing circulation "," information application"," financial control ",and business strategy extracted four dimensions namely" service innovation "," production stability "," brand marketing "," police difference "; and key factor extracted six dimensions, were" brand circulation "," product diversity ","human resource training "," advertisement "," stable materials "," innovation reengineering " as shown in Table 2.

In order to examine the internal and external environment, business strategy and the key factor in distinction validity, and on the variable dimensions of the factors conducted by Pearson correlation analysis as shown in Tables 3-6 and found that the dimensions of the correlation coefficient between all significantly less than 0.9 standard, which represents the relevant degrees of dimensions at low level, as well as a distinction validity of the scale.

In addition, whether there was significant positive correlation between by the typical correlation analysis to study that the internal, external environment and business strategy these three variables in the relationship with the key factor and used the Pearson correlation analysis to study the relationship among dimensions, and the result are shown in Table 7-9,and the results showed that the external environment and key factor exist in significant positive correlation (hypothesis 1), and between the internal environment and key factor exist in significant positive correlation (hypothesis 2), as well as business strategy and key factor exist in significant positive correlation (hypothesis 3). A better understanding of the internal, external environment and business strategy had influence on the key factor, using multiple regression analysis of forced entry method to study the influences of the key factor to identify the factors, the following finishing Table 10-14 indicated.

After studying the results, the enterprise's " material price " the better the status of implementation, and the key factor of "innovative reengineering" become more important, "market information" being the greatest degree of influence, followed by "customer behavior" and "replace threat" said that the three dimensions of the external environment is the key factor to significantly affect enterprise. While "research and innovation" the better the situation, the key factor of "brand circulation" more significant, "financial control" of the strongest influence, followed by the "information application" that these two dimensions of the internal environment will significantly affect enterprises as key factors. And "policy difference" carried out the better, the key factor of "innovative reengineering" the more prominent and profound influence. Although no direct internal environment significantly positive effects on key factor, even there is rich in natural resources within the organization and the managers can not make the right business strategy, effective distribution, integration and immediate improvement team, it is really difficult for influence the fitness equipment industry by relying on internal resources of an enterprise.

 

5. Summary and Suggestions
5.1 Summary
The non-unitary enterprises and interview approach, but corporate executives, research institutions and academics expert advice and theoretical research results after then with the entire enterprise executives of the companies census, and the evidence found that the external, internal environment and business strategy have positive correlation with key factor, and the external environment has significant effects on internal environment, and external environment has significant effects on business strategy, the key factor, and the internal environment has significant effects on business strategy, but has no significant effect on the key factor, and business strategy has significant effect on the key factor. And based on findings of the study and scholars with fitness equipment industry characteristics, together with factor analysis, extracted six key factors dimensions of the fitness equipment industry, followed were "brand circulation", "product diversity ", "human resource training ", "advertisement ", "stable materials", "innovation reengineering ".
Taiwan's fitness equipment manufacturers to achieve their business objectives and performance, requiring to pay close attention to the market information, the habits of consumers and the threat of competitors; make good use of information; implement of the budget control completely, cost control, as well as differences in the implementation of the strategy. It highlights the effect on the new product development, market segmentation, and marketing channels, etc.

5.2 Suggestions
Mostly because of fitness equipment manufacturers were Original Equipment Manufactures (OEM), and establish its built-in inspected standard according to the test of their products from the various customers, which is completely the same for more than 20 years. But based on the "safety" factor, fitness equipment industry standardize testing should be unified and implementation of standards "should be inspected" or "directory" requirement as soon as possible. Via Taiwan Goods Manufactures Association (TSMA) or manufacturers proposal to invite the development of research institutions drawing out the notice and government authorities in charge of formulating examination notice, to impel the fitness equipment industry establish the similar unified inspected standards and norms in bike industry sooner.

Although the fitness equipment industry in the Chinese mainland starts comparatively slow, excluding the considerations of the mainland's domestic market demand and cost structure, and related parts & assembly supply system and satellite manufacturing plant cluster system effect has not been significant, while in the future study could concentrate on the cluster industry regions, such as Zhejiang Fuyang, Cangnan, Jiangdu of Jiangsu, Qinzhou and Cangzhou of Hebei and other regions to discuss the future development and management of the fitness equipment industry Supplier Chain in the Chinese mainland. This will be a very interesting and in line with the industry vertically integrated research topic.

As a single country, the United States accounts for about one-third of the global fitness equipment the scale of the market, the world's top three brands ICON Group, Nautilus, Life Fitness are U.S. manufacturers, meanwhile the European market accounts for about 25% of the global market. Therefore, studying the scale of the market will be Europe and the United States and their trends, the study of the fitness equipment industry will expand the scope of the study and be more complete.

 

6. Appendix
Table 1
Taiwan Sports Export Amount
Unit: Thousand US Dollars

Product items

2007

2006

2005

2004

2003

2002

2001

Golf supplies

314,396

282,981

306,158

294,522

317,210

289,718

287,539

Fitness equipment

469,083

431,672

424,871

374,171

338,866

340,626

353,536

Skates

1,907

2,171

1,885

1,839

1,522

1,861

2,106

Fishing and hunting supplies

40,217

39,502

44,160

44,753

41,938

50,740

50,411

Kind racket

11,256

10,595

9,901

10,894

9,524

9,691

12,844

Water Sports

34,747

35,127

37,599

37,159

41,930

42,017

38,668

All kinds of balls

20,616

18,084

18,030

18,890

18,782

21,601

18,928

Pool supplies

6,643

8,568

9,442

10,263

8,214

8,216

11,242

Ski
supplies

9,225

10,747

11,515

14,120

11,680

7,789

9,666

Bowling supplies

2,476

2,056

2,713

2,749

2,479

2,471

2,251

Camping supplies

2,791

2,922

1,792

2,437

2,377

4,629

1,622

Campaign gloves

1,465

1,158

900

670

1,043

1,125

811

Billiard supplies

202

298

361

1,192

903

751

1,025

Outdoor supplies

341,245

387,873

432,608

502,291

466,210

490,975

481,729

Other items

187,376

189,924

195,142

246,134

258,875

259,853

315,523

Total

1,433,648

1,423,678

1,497,078

1,562,085

1,521,553

1,532,064

1,587,899

Resource: Taiwan Custom Import & Export Stat., Taiwan Goods Manufactures Association (TSMA), 2007.

 

Table 2
The variables factors and reliability analysis

Variables

Dimensions

Item Reliability

Overall Reliability

External Environment

Government measure

0.8320

0.8342

Market information

0.8517

Material price

0.7193

Customer behavior

0.6581

Integration with the industry

0.7639

Replace threat

0.8171

Internal Environment

Research and innovation

0.8828

0.9234

Marketing circulation

0.8486

Information application

0.8522

Financial control

0.8097

Business Strategy

Service Innovation

0.8184

0.8875

Production stability

0.6956

Brand marketing

0.8280

Policy difference

0.7127

Key Factor

Brand circulation

0.7503

0.8068

Product diversity

0.7910

Human resource training

0.6738

Advertisement

0.6688

Stable materials

0.7428

Innovation reengineering

0.5369

 

Table 3
The Pearson correlation among factors of external environment

 

Government measure

Market information

Material price

Customer behavior

Integration with the industry

Replace threat

Government measure

1

 

 

 

 

 

Market information

0.541**

1

 

 

 

 

Material price

0.034

0.160

1

 

 

 

Customer behavior

0.344**

0.384**

0.363**

1

 

 

Integration with the industry

0.254*

0.067

-0.025

0.214

1

 

Replace threat

0.158

-0.024

0.047

0.194

0.253

1

 

Table 4
The Pearson correlation among factors of internal environment

 

Research and innovation

Marketing circulation

Information application

Financial control

Research and innovation

1

 

 

 

Marketing circulation

0.678**

1

 

 

Information application

0.514**

0.359**

1

 

Financial control

0.572**

0.603**

0.326*

1

 

Table 5
The Pearson correlation among factors of business strategy

 

Service innovation

Production stability

Brand marketing

Policy difference

Service innovation

1

 

 

 

Production stability

0.466**

1

 

 

Brand marketing

0.561**

0.457**

1

 

Policy difference

0.411**

0.425**

0.573**

1

 

Table 6
The Pearson correlation among factors of key factor

 

Brand circulation

Product diversity

Human resource training

Adverti-
sement

Stable material

Innovation reengineering

Brand circulation

1

 

 

 

 

 

Product diversity

0.514**

1

 

 

 

 

Human resource training

0.161

0.117

1

 

 

 

Advertisement

0.245

0.327*

0.275*

1

 

 

Stable material

0.442**

0.466**

-0.142

0.058

1

 

Innovation reengineering

0.403**

0.276*

0.250

0.345**

0.180

1

 

Table 7
The Pearson correlation between external environment dimension and key factor dimension


External environment dimensions

Key factor dimensions

Brand circulation

Product diversity

Human resource
training

Advertisement

Stable
materials

Innovation
reengineering

Government measure

0.055

-0.016

0.559**

0.015

-0.089

0.143

Market information

0.263*

0.200

0.197

0.107

0.071

0.517**

Material price

0.183

0.095

0.040

0.223

0.168

0.401**

Customer behavior

0.460**

0.299*

0.327*

0.237

0.192

0.270*

Integration with the industry

-0.036

0.222

0.239

0.041

-0.115

-0.097

Replace threat

0.172

0.281*

0.281*

0.467**

-0.094

0.093

 

Table 8
The Pearson correlation between internal environment dimensions and key factor dimensions

Internal environment dimensions

Key factors dimensions

Brand circulation

Product diversity

Human resource
training

Advertisement

Stable materials

Innovation reengineering

Research and innovation

0.285*

0.160

0.248

-0.134

-0.122

0.252

Marketing circulation

0.184

0.053

0.076

-0.067

-0.123

0.143

Information application

0.380**

0.103

0.149

0.150

0.105

0.270*

Financial control

0.416**

0.255*

0.199

0.003

0.106

0.234

 

Table 9
The Pearson correlation between business strategy dimensions and key factor dimensions

Business strategy dimensions

key factors dimensions

Brand circulation

Product diversity

Human resource
training

Advertisement

Stable materials

Innovation reengineering

Service Innovation

0.090

0.254*

0.129

0.175

-0.009

-0.074

Production stability

0.174

0.271*

0.070

0.391**

0.098

0.099

Brand marketing

0.225

0.220

0.450**

0.273*

-0.003

0.255*

Policy difference

0.476**

0.367**

0.275*

0.259*

0.029

0.396**

 

Table 10
Regression analysis for external environment to key factor

Dependent variable

Independent variables

Standardized

coefficient

T-
value

Significant

F-
value

Significant

Adjusted R-squared

Key
Factor

External environment

Government measures

-0.153

-1.119

0.268

5.387

0.000***

0.308

Market information

0.304

2.235

0.030*

Material price

0.128

1.087

0.282

Customer behavior

0.304

2.326

0.024*

Integration with the industry

-0.055

-0.474

0.638

Replace threat

0.338

2.946

0.005**

 

Table 11
Regression analysis for internal environment to key factor

Dependent variable

Independent variables

Standardized coefficient

T- value

Significant

F- value

Significant

Adjusted R-squared

Key
Factor

Internal environment

Research and innovation

-0.045

-0.239

0.812

3.020

0.025*

0.120

Marketing circulation

-0.244

-1.375

0.175

Information application

0.288

2.020

0.048*

Financial control

0.380

2.384

0.021*

 

Table 12
Regression analysis for business strategy to key factor

Dependent variable

Independent variables

Standardized coefficient

T- value

Significant

F- value

Significant

Adjusted R-squared

Key
Factor

Business strategy

Service Innovation

-0.167

-1.149

0.255

5.222

0.001**

0.223

production stability

0.157

1.141

0.259

Brand marketing

0.191

1.215

0.230

Policy difference

0.372

2.585

0.012*

 

Table 13
Regression analysis for external, internal environment and business strategy to key factor

Dependent variable

Independent variables

Standardized coefficient

T- value

Significant

F- value

Significant

Adjusted R-squared

Key Factor

External environment

0.360

2.574

0.013*

8.558

0.000***

0.278

Internal environment

-0.205

-1.358

0.180

Business strategy

0.403

2.570

0.013*

 

Table 14
Entire table for hypothesis testing

Hypothesis

Test results

H1: There were significant positive correlation between external environment and key factor

support

H2: There were significant positive correlation between internal environment and key factor

support

H3: There were significant positive correlation between business strategy and key factor

support

H4: The external environment has significantly difference to the internal environment

support

H5: The external environment has significantly difference to business strategy

support

H6: The external environment has significantly difference to key factor

support

H7: The internal environment has significantly difference to business strategy

support

H8: The internal environment has significantly difference to key factor

Do not support

 

7. Reference

1. Daqian Yanyi. Strategy Wisdom, Changhe Press, 1989.
2. Yi Bei. The Chinese Olympic Committee, Olympic Charter,1999.
3. Taiwan Custom Import & Export Stat., Taiwan Sporting Goods Manufacturers Association (TSMA), July, 17th, 2007 Visit: http://www.sports.org.tw
4. Henry Gasp. Open Business, the World Magazine, September, 26th, 2007
5. Peter D, Zhong Nei. Dulake views Asia, translated by Liu Jialing, Taipei, World Vision, 1998.
6. Shi Qingtu. Explore competitive advantages of fitness equipment of Tonic company exemplified, Daye University Graduate paper. 2005
7. Chao Kaungming. The marketing trend and development of fitness equipment in China in 2010. [J]. Monograph sporting goods section 30, in August 2007 magazine: Page 2-4
8. Aaker, D. A. Strategic Market Management, New York: John Wiley and Sons In., 24-70, 1984
9. David A. Aaker, Strategic Market Management, New York: John Wiley & Sons, 2005.
10. Guielford, J. P. (1965)," Fundamental statistics in psychology and education",
4th ed, New York: Mcgraw Hill Inc.
11. Grant, R. M. The Resource-Based Theory of Competitive Advantage : Implications for strategy Formulation , California Management Review, 1991, 33(3), spring , pp.114-135.
12. Nam P. Suh, Nam Pyo Suh, Axiomatic Design: Advance and Applications, Oxford University Press, 2001.
13. Porter, Michael E, Competitive Strategy: Techniques for Analyzing Industries and Competitive, New York: Free Press, 1980.