Analyzing and Comparing Mobile Phone Distributors’ Operation Performance in Taiwan:Based on Five Forces

碩士 === 逢甲大學 === 經營管理碩士在職專班 === 96 === “Mobile technology has become a ‘social technology’, and it’s changing people’s daily communication, work, and ways of entertainment”, Jorma Ollila, Chairman and CEO of Nokia. Since Taiwan government permitted private mobile phone companies join in the industry...

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Bibliographic Details
Main Authors: Tei-Shan Liu, 劉德山
Other Authors: Kun-Hung Yang
Format: Others
Language:zh-TW
Published: 2007
Online Access:http://ndltd.ncl.edu.tw/handle/68406944985693912496
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Summary:碩士 === 逢甲大學 === 經營管理碩士在職專班 === 96 === “Mobile technology has become a ‘social technology’, and it’s changing people’s daily communication, work, and ways of entertainment”, Jorma Ollila, Chairman and CEO of Nokia. Since Taiwan government permitted private mobile phone companies join in the industry of mobile phone services business, the popularity of mobile phones had reached top 1 in the world in merely a few years. It can be seen as another kind of ‘Taiwan Miracle’. Mobile phone products have been a part of everyone’s daily life, and are not to be replaceable. With the help of more freedom was given in the Taiwan telecom industry, the issuing of new licenses, the trend of 3C integration, and the appearance of different sales channels, the whole communication industry started to facing a structural change – from a simple product-oriented ‘flow of handsets’ to a service-oriented ‘flow of mobile phone numbers’. The selling of handsets in the traditional sales channels in Taiwan has gradually been falling apart. In this kind of highly competitive environment that fills with uncertainty, a handset distributor can only increase its competitive ability by raising its own operation performance, and lowering its operation cost effectively. Therefore, a handsets distributor needs to look deeper in this question: How to evaluate the variance of its own performance with suitable measures, and combines the changing of the environment and actual operation circumstances to find better solutions. This research was conducted with the approach of case study. By collection data of different handset distributors, conducting intensive interviews of each company, analyzing and exploring their competitive strategies when they were facing structural changing in the industry, it evaluates the operation performance with the help of Financial Five Forces. The cases studied here are the four biggest handset distributors, Synnex, Senao, Aurora, and Mobitai. These companies are all listed companies, and have open financial reports. This research analyzed the appearance and the change of trends reflected by the financial indexes of these companies, and finds the following: 1. Synnex is the best company in terms of performance, as a result of the Financial Five Forces analysis. 2. Financial performance shows what has done right for a company in the past, and the result of it. But it doesn’t guarantee good future performance. A company can only sustain good performance by constantly choosing the right things to do in the industry. 3. Market and product uncertainties do have influence on operation performance. 4. Strategic cooperation or competition among operators, handset vendors, handset distributors, wholesale stores, and front-line stores does have great impacts on operation performance. 5. Market and product uncertainties do have influence on operation performance. But competitive strategy types (cost leadership + rapid respond to market price vs. differentiation + monopoly operation in each product segment) have minor effects when industry environment have great influence on operation performance. 6. A handset distributor building its own sales channel can have positive effect on operation performance only when the strategic cooperation are in the right track. 7. 2 years warranty, timely logistic, repair ability, MIS system, people relationship in the industry, non-official information, number of outlets, inventory management, sales ability, performance of judgment can all have temporarily minor influences on operation performance. They don’t create sustainable competitive advantages in the long run.