STRATEGIC GROUPS, PERFORMANCE, AND ISSUES RELATED TO PRODUCT DESIGN STRATEGY

This study examined design cases involving new product development related to Taiwanese home appliance firms for exploring the strategic groups formed by local firms and their performance in new product development and other issues related to product design strategy. The questionnaire survey demonstrates that Taiwanese home appliance firms, in terms of product design strategy, can be grouped into passive response, aggressive response, and R&D focus groups. In their response to the challenges faced following Taiwan joining the WTO, firms in different strategic groups exhibited different financial and non-financial performance. Furthermore, they differed significantly in dealing with product design activities, particularly new product development types, product design features, motivations, and design appeals. Differences in these aspects may be the reason for their differences in new product development performance.