| Summary: | 碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 104 === Taiwan's high-tech companies often become the OEM/ODM partners for other international brand companies with small profit (from 3 to 4%), due to the limited size of their home markets. This could introduce a huge impact of sales performance to OEM/ODM companies, when there exists large fluctuations in the global economy, the main customers change orders, or new competitors jump in. Nevetheless, some Taiwan's high-tech companies, which are excellent OEMs/ODMs, may transfer to brand companies with the objective of improving profits, cumulative innovation and intellectual property patents for business continuity.
However, brand is not easy to build up and maintaining brand visibility and customer loyalty requires a lot of financial and resources support. Meanwhile, brand companies need to continue to have outstanding and excellent sales products available in order to maintain brand image. Hon Hai chairman Terry Gou said, the market size of the population for hoading up a brand market, needs to be at least 50 to 60 million people. Taiwan's population is less than half of the market size. The road of OBM looks much harder than OEM/ODM model.
It is NOT an easy task to continue offering excellent and good sales products in the market for Taiwan's OBM companies, due to the rapid change of destructive innovation and industrial innovation, even for the market pionior. If companies do not keep up with the market trends and make suitable changes then the new rising star will soon become their replacement. Smarrtphone companies such as Nokia, RIM, HTC all have oligopoly market for many years. However, if there is no continuous innovation to meet consumer expectation, the brand company will soon be phased out, due to rapid changes of market demand in the competitive environment and the ecosystem.
This study conducts predicament and transformation analysis of the Taiwan brand company, which was a OEM company from 1997 to 2006 and climbed the peak (in shipments of forty-five million units, smartphone market share ranked fourth in the world in 2011) and then quickly dropped out of the number ten market share in 2012.
This study uses the "Five Forces Model" supplemented with ecosystems and competitive advantages to review the changes of case company’s business strategies based on the dynamic market demend and trend changes and try to find possible stretegies to make the case company survive.
|
|---|
