A Case Study of AXIOMTEK for Entry Barriers in Taiwan IPC Industrial

• Main Authors: Yu-Ying Mou, 茆裕盈
• Other Authors: Kuan-cheng Chen
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/z8ftum

碩士 === 世新大學 === 企業管理研究所(含碩專班) === 96 === This research is directed towards the continuous decline in gross profit of Taiwan’s consumer electronics OEM companies due to fierce competition within the industry. Given the situation, companies are covetously attempting to divide existing business groups and dive into the industrial PC industry, a computer platform based niche industry in which conventional rivals have intensively focused on. The subject of the case study of this research, Axiom, due to its long history in the vertical industry with a wide-ranging product application market and a complete line of products, and doing so by cooperating with distributors as the business model, is characterized by stable revenue growth and continuous high gross profits, and is thus suitable for the discussion regarding the following issues: (1) Industrial PC industry characteristics and business model; (2) What are the entry barriers into the Industrial PC industry? The case study methodology is adopted in this research, citing references to discuss and conclude theories of different scholars on entry barriers, by constructing three main aspects of industrial PC entry barriers according to operation characteristics of the industrial PC industry, and supplementing them with information collected on the case study subject and from expert interviews with high-ranking executives, and by examining one of the industrial PC companies, to understand how companies execute operating strategies to raise the entry barrier of an existing industry. As can be observed in the research, the three main aspects of the industrial PC entry barrier will continue to exist in the existing industry, and besides the industry barrier, during the interview process, high-ranking executives of the company under consideration stressed that whether the new players in the field have enough technology and service oriented attitude to provide customers with a total solution, as well as efficiency, flexibility, innovation and quality to achieve customer satisfaction, thereby consolidating a sense of loyalty and trust, which is the basis of long-term cooperation, are all of the main key barriers they face, which prevent them from quickly entering the industry.