SANYANG relied on the Japanese Honda?Honda Motor Co., Ltd?to produce motorcycles and thus entered the technique introduction stage since 1961. As the Taiwan government promoted self-produced rates in making motorcycles, producers of motorcycles reached a 100% self-producing rate, self independent in R&D, and thus turned OEM to ODM around early 1980s. However, the motorcycle market has been saturated due to the higher ownership of motorcycles and national incomes around 1990. SANYANG foresaw at early mature stage that motorcycles would not be the major transportation means in Taiwan in the decline stage. Thus, SANYANG decided to make an oversea investment in Vietnam?VMEP? as a way to pursue further growth and survival for lengthening its industry life cycle in 1993. Later Honda also invested in Vietnam market in 1997 and relationship between SANYANG and Honda ended in 2002. ??This research investigated the relationship between industry life cycle and international enter strategys for SANYANG in Vietnam. The case study of SANYANG found that industry life cycle can be prolonged by an international enter strategy for oversea investment in Vietnam. In addition, SANYANG gained competitive advantage by exploring inexpensive labors and resources to lower down production costs as an investment return. As for SANYANG?s dependent OEM relationship with Honda to make motorcycles, SANGYAN had ended dependency relationship with Honda because of its Vietnam investment strategy.
