Competitive Procurement Strategy of PC Key Components – A Case Study of Company H

• Main Authors: Shu-Fen Lin, 林淑芬
• Other Authors: Dr. Jyh-Horng Lin
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/18500358269501225813

碩士 === 淡江大學 === 國際商學碩士在職專班 === 94 === There has been a gradual increase in the importance of the procurement strategy in companies. This study proposes a theoretic framework and utilizes a multinational technology company – company H as an empirical case study for integrating its resources, current market position and expected environmental influences, and comes out the core competences and advantages of the company. Along with these advantages, the company develops a competitive procurement strategy to increase its competitive viability. We point out how the framework can be applied as a tool for exploring the procurement strategy and how this strategy can increase the competitive advantages for this company. There major conclusions have been made as follows: 1. While company H’s major competitors might deliver one or two facets of this strategy, only company H can deliver all three facets: high tech, low cost, best customer experience at once — and this is critical to success in today''s marketplace. 2. With the good market position and the huge volumes it buys, company H has a strong bargaining power to its suppliers. It helps to reduce the material and supply chain cost of company H and to achieve its low cost strategy. 3. The open investment policy and open market in China provide lower wage labor and huge domestic market. Company H has taken this advantage and set up the branch or join venture with local enterprise to occupy the large market share in China. Integrating these three strengths, company H develops a competitive procurement strategy and operation model to lower its cost and increase its competivitness. It also helps company H getting closer to be the leading technology company in the world.