Growth Strategy & RDP Valuation in the Global Semiconductor Distributors

• Main Authors: Pan Jui-Lin, 潘瑞林
• Other Authors: 吳春光博士
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/52802888891732112911

碩士 === 輔仁大學 === 科技管理學程碩士在職專班 === 99 === The impact of 2008 subprime mortgage financial crisis making global Industrial structure has the dramatic change. Upstream suppliers in order to meet the demand of delivery conditions of OEM/ODM costumers, they transfer customers service to agent attempt to risk diversification. There are more and more requirements of capital, logistic and technical support in this harsh environment. How to increase revenue, market share and reduce costs became an important issue for manager. What the value should be for semiconductor distributor in the capital market, when lower Profit, and industry concentration. Merger and acquisition became a trend in recently, it also accelerate industry concentration. Fierce competition make profit margin goes down between vendor and distributor. The rule of company’s growth and getting profit is that increase competitive advantage, greater economies of scale, cost down, diversify, and into emerging markets. The study`s sampling includes the financial reports for the past 5 years of North America and Taiwan`s top 2 distributors combined with the Dupon report equality bundle and the Palepu, et al (2004) and David M. Chen (2006) RDP model for major studies structure. The purpose is to realize the relation between firm`s resources and enterprise value.This study found that successful semiconductor distributor on their operation, not only growth up by themselves but also through merger and Strategic Alliance to get the power of growth. Economies of scale, product mixes, and controlling of overhead are also important. Financially, the suitable capital structure, and the financial leverage ratio, may also help the enterprise using least equity to create the greatest rate of return. Semiconductor distributor plays an important role of industry-chains of electronic product. Entire of electronic industry competition is intense and enter lower profit and industry concentration. Research motive is that Semiconductor distributor should take what kind of growth strategy to face highly competitive environment.