Based on the analysis of the development process of Taiwan industry, we can find that the industry structure will adjust itself if there is an advantage of production elements over international competitions during its early and middle stage of development. For example, when the labor cost rises, Taiwan Industry will leverage its advantage of capital and land cost to develop capital-intensive industries. The feature of this stage is that the incentive and necessity for innovation is much less so that the competitive foundation is focused on lower cost of labor, land, construction, capital, etc.
For the past ten years, Taiwan economy has entered a stage of highly developed, each cost of element is no longer comparatively low. Also, developing industries have become mature and therefore new entrants can use standardized technology and mature equipment to make a production. Under this circumstance, to renovate the industry structure, it needs to be upgraded by innovation and R&D. When there are more and more competitors coming into play, the profit is getting less and less. To make a breakthrough, innovation and R&D is the only way to go. However, it seems that there is no comparative advantage to make the industry adjust itself to the new environment, which is the key issue that will be addressed in this thesis.
Innovation is the engine for the sustainable growth of a firm to push forward the needs of each time period. Besides, it is the build-up of R&D, channel, service and business model to tie up with the environmental renewal. In a word, the good companies always have dynamic progressive strategy to adapt to fast changes, and thus control competitive and keep growing. Taiwan communication industry has realized the rapid growth model thanks to the fast technology development and expansion of market. However, with the increasing number of competitors and keener global competition, the management is facing more risks and uncertainties. This research is based on the historical materials, case studies, and the author’s study to provide the communication industry with new thinking and strategy for the future competition.