A Study on Positioning, Strategic Groups of Distribution Channel in European Market of Taiwan Memory Module Manufactures - with TwinMOS as a Case Study

• Main Authors: Hsueh, Chih-Chiang, 薛志強
• Other Authors: Jyh-Horng Lin
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/29658766025364787798

碩士 === 淡江大學 === 國際貿易學系碩士在職專班 === 92 === In semi-conductor Industry, Memory Module Business has lower entry barrier in technology and capital needed. Therefore, it also causes more selling competition for a lot of players in the market. Moreover, the price of memory module is changing rapidly. The Market Players need to sell the goods out timely, in order to keep profit and prevent lose. That is reason to have a well-constructed distribution channel becomes one of the most important core capabilities in this industry. The territory of this research is focus on European Market. And the objects are to find out the competitive factors of distributing system in Memory Module Business by in-depth interview to top seven Market Players in Taiwan, and to position them by MDS (Mutli-Dimensional Scaling) method with such factors for classifying to different strategic groups. The entry barriers of distribution channels in different strategic groups are also discussed. A case study will be explained by such conclusions. Four factors and three strategic groups are identified, in this research, to Taiwan Memory Module Business, regarding to the positioning chart of European distribution channel. The four factors are number of product line, of branch, production capacity and warranty. The three groups are ‘ Strength group’, ‘Flightiness group’ and ‘Weakness group’. The three groups come with different features and strategies. ‘Strength group’ blocks the channel to market by taking the advantage of customer loyalty to branding (Block Strategy) ‘Flightiness group’ grows up rapidly by manufacturing in economic scale, and takes the price advantage to increase market share. (Run Strategy) ‘Weakness group’ is less competitive than the former two groups, and only operates OEM business for DRAM FAB. (Team-up Strategy) The recommendations to different strategic groups, regarding to the position chart of distribution channel, are as below: ‘Strength group’ can take leading edge by innovation of new product offering to customer, and also brand promotion with higher profit margin created. ‘Flightiness group’ may move to ‘Strength group’ by building own brand and enforcing the relationship with distributors in add-value service provided, new product offered, and new business model created. ‘Weakness group’ needs to focus on niche market, and takes either branding or economical production of selected product lines with limited resources. The case study, TwinMOS, can be well explained by strategic group theory and take channel strategies recommended.