Business Services is a knowledge-intensive industry which provides professional services to other enterprises. The business services industry in Taiwan has grown significantly in recent years. However, the services themselves are in general not quite mature and are small in scale compared with their competitors in advanced countries. How, then, should they ready themselves for the upcoming flood of liberalization measures which will result when Taiwan enters the WTO?
According to our survey research, Taiwanese firms in the business services consider that their competitive advantage lies in their experience, technology and scope of services. However, from the results of logistic regression, we find somewhat different factors affecting the performance of a firm. After synthesizing the results, we recommend the following strategies for business service firms in Taiwan to enhance their competitiveness.
1. The use of strategic alliances to counter pressure from large firms.
2.Exploration of the possibility of exporting their services. Providing services to other Taiwanese firms investing in foreign countries is an ideal first step towards exporting.
3.The avoidance of price competition. Taiwanese firms are relatively weak financially, therefore initiating or following price competition could prove very threatening to the survival of a firm.
4.The building-up of a reputation for service is the most important marketing strategy
for SMEs. A Good reputation erects entry barriers against new comers, hence it is the best weapon with which to fend off foreign competitors.
5.The improvement of service quality, efficiency and upgrading the professional capacity of employees may not reflect in the performance records immediately, but will be important in long term growth.
