The Competition Strategies of Quanta Are for Counteracting Foxconn on Entering Notebook ODM/OEM Market －A Simple Game Model

• Main Authors: Chang Ching-Fa, 張慶發
• Other Authors: Peter Wu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/50062767775442067244

碩士 === 輔仁大學 === 科技管理學程碩士在職專班 === 98 === Foxconn decided in February 2009 and formally declared that cut into NB (notebook computer) ODM/OEM market, may be through the cost advantage of upstream and downstream integration of electronic manufacturing service facility (EMS) to grab the orders with reduction (cheap) price, and through continued mergers & acquisitions, strategic alliances with customers for orders --- and so on, which will likely compress the foundry space and corporate profits to original NB ODM/OEM factories, but also the monopoly groups Quanta, Compal, Wistron, Inventec how to respond to it? This question is worth to be explored. This thesis will adopt a simple extension of model-type game, the standard form game model and related literature to support and do the study, to make a brief introduction for NB computer industry. What are the possible strategies form competitor/Foxconn for cutting into NB ODM/OEM industry field? And what are the possible competitive strategies from monopolist groups (Quanta, Compal, Wistron, Inventec) for response to competitor/Foxconn? What are the impacts to whole NB ODM/OEM industry from competitor’s low price competition? At the same time, there will through a balanced strategy analysis to find out the optimal competitive strategy for the case company. And what are the evolutionary games of competition and cooperation among NB ODM/OEM companies in the future? Finally, this study will highlight the conclusions and recommendations to Taiwan NB ODM/OEM industry and relative industry for reference in the future. Finally, the study found that competitors will generally take a grab orders with price reduction strategy during the early entering in order to build and enhance its ODM/OEM development capacity and get the opportunities for training, although the payoff (total gross margin) on the entry / grab orders with price reduction strategy is worse than no entry strategy. However, when orders has reached an economy of scale can obtain larger rewards, the pay off of non- reduction price strategy is higher than reduction price strategy, all ODM/OEM factories are not appropriate to grab the orders with reduction price strategy at this moment. In the long run, will recommend NB ODM/OEM factories should reduce production costs and start to create product value, healthy competition with each other to increase profits.