An empirical study of Business Strength Matrix – A case of Taiwanese wireless LAN equipment manufactures

碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 94 === Taiwanese electronics industries had demonstrated excellent capacity in product development, industrial design and effective cost control capability. In the OEM/ODM business, these capabilities had played a very important role on global value chain in high...

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Bibliographic Details
Main Authors: Ming Jer Chen, 陳明哲
Other Authors: Chia Chi Chang
Format: Others
Language:zh-TW
Published: 2006
Online Access:http://ndltd.ncl.edu.tw/handle/88797555057482747645
Description
Summary:碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 94 === Taiwanese electronics industries had demonstrated excellent capacity in product development, industrial design and effective cost control capability. In the OEM/ODM business, these capabilities had played a very important role on global value chain in high technical products. By overviewing the history of information and networking industries in the past ten to twenty years in Taiwan,it can be observed that Wireless LAN industry had grew following the model. To analyze Taiwanese wireless LAN products manufacturer’s value chain strategy and competitive analysis, I apply Porter’s Competitive Strategy (1980), Competitive Advantage(1985) & Stan Shih’s Smile Curve Theory on Me-Too Is Not My Style (2004) as the frameworks of this study. Stan Shih suggested Taiwan high tech. industries have to develop higher value core competence, such as research & develop on fundamental technology, branding and sales distribution capabilities. In this study, I selected seven WLAN manufacturers who had IPO (before 2002) in Taiwan stock exchange market, a very important index on global supplier chain of WLAN industry. Based on Stan Shih & Porter’s Value Chain Strategy to study their resources allocation & review their yearly financial performance, I found Stan Shih’s Smile Curve Theory also can be applied to the Taiwanese WALN manufacturing industry. I had collected the seven companies’ financial report which had IPO before 2002 in Taiwan Stock Exchange Market; based on my experience on wireless LAN industry and knowledge about top management in different organizations, I separated these seven companies into three groups which are R&D oriented, Manufacture oriented and Sales/Marketing oriented. And then compare their yearly growth rate , gross margin, ROA, ROE & EBIT/Rev. ratio etc. to build the axis of industrial attractiveness of BSM by Po-Young Chu’s “Business Growth Strategies for Asia Pacific” (2005), on the other hand, to collect R&D expense rate, fix assest expense rate, sales/marketing expense rate & F.W.C./EBITA rate to form the relative competitiveness axis on BSM. From my investigation on company core competence & strategy resources allocation, I found different companies have their own culture & strategy due to they had different CEO, organization, core value & technology, Conclusions of the analysis are as follows: 1. Stan Shih’s Smile Curve theory also can be applies on Taiwanese wireless LAN manufacture industry; the company are more likely have better financial performance when the company has core competence on R&D focus & Sales/Marketing focus. 2. On the same group of R&D oriented, manufacture oriented or sales/marketing oriented, when the company can form right strategy & allocate more resources on the direction of core competence, their financial result also be better. 3. It is very important that company should develope their own core value & core technology, based on company Vision, Mission, culture & strategy to allocation resources, on Michael Porter’s Competitive Advantage to set right strategy & focus major activities. CEO & high level executives are a critical success factor to managing their strategy resources, it can’t be too diversified when the company is still in the early stage of their business lifecycle, it need time to build core competence & growing by re-engineering if they try to change or enhance their core competence.