Wuan Chuang: A 100-Year-Old Soy Sauce Producer Moving into the Next Century

Abstract

Wuan Chuang Food Industrial Corporation was founded in 1909 and is the longest lasting brand of soy sauce in Taiwan. Along its evolution into what it is today, this small and medium-sized enterprise had adjusted its focus between black-bean and soybean soy sauce businesses. The former is a traditional Taiwanese soy sauce that requires a lengthy, naturally-brewed process and tremendous manual works. In turn, black-bean soy sauce can only be produced in small volumes and charged premium prices. The latter, introduced to Taiwan in 1940s, is a Japanese-style soy sauce that can be produced massively in machine-controlled, giant tanks, and is dominated by large firms who compete sharply on prices. This case delineates Wuan Chuang’s growth path and the nature of the soy sauce industry in Taiwan. The stage is set for students to discuss Wuan Chuang’s strategic orientations and whether the directions of its actions fit with its competitive strengths.