Chao Kaungming
Management School, Xi'an Jiaotong University

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 α 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

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

Table 2
The variables factors and reliability analysis

Table 3
The Pearson correlation among factors of external environment

Table 4
The Pearson correlation among factors of internal environment

Table 5
The Pearson correlation among factors of business strategy

Table 6
The Pearson correlation among factors of key factor

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

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

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

Table 10
Regression analysis for external environment to key factor

Table 11
Regression analysis for internal environment to key factor

Table 12
Regression analysis for business strategy to key factor

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

Table 14
Entire table for hypothesis testing

7. Reference