An Exploratory Research on Business Models of Small and Medium Enterprises Lathe Processing

Abstract

The purpose of the study was to explore the business model of SMEs lathe processing The researcher tried to find out their business model and provide some advice to keep sustainable operation The researcher selected four companies located in Tainan and had established more than fifteen years and face to face interview with the founder Our interview guide based on “Business Model Canvas” which conducted by Osterwalder & Pigneur in 2010 The researcher also followed this model to analyze these cases The results can be summarized and classified by the human scale of the enterprises: (1) Extremely small enterprises lathe processing (2) Small enterprises lathe processing (3)Slightly scale enterprises lathe processing And SMEs lathe processing has five main characteristics of the business model as below: A Do parts lathe processing and help customers to solve the problem are the value proposition B Geographically nearby is a huge consideration as setting target customers C Most of them rely heavily on customer referral as the channel to reach potential customers D Machinery equipment and profound technical experience are the key resources E The same trade subcontractor and supplier are their key partners According to the result from the above this study recommended two practical strategies: A Invest in the advanced machine and make the transition to high-value-added production B Choose the industry that has a prospect as its target customer

Date of Award	2020
Original language	English
Supervisor	Yu-Lin Wang (Supervisor)