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The Asia‐Pacific region has enjoyed robust economic growth in the last two decades and a substantial manufacturing network has been established in the region. The manufacturers in this region are now able to offer very good quality products cost‐effectively in the low‐end product category. But the recent regional financial turmoil, besides the increasingly integrated global economy and the emergence of regional trade pacts, has had an impact on the whole region and also presented many new challenges for businesses. Under this condition, manufacturers have to consider seriously how to win competition as they move into the new millennium. This paper applies axiomatic design to develop the guidelines for high value‐added activities. Manufacturers may discover their own weak points and develop their own core competencies or competitive priorities to drive change according to these guidelines.

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