| Summary: | 碩士 === 國立高雄大學 === 國際高階經營管理碩士在職專班(IEMBA) === 98 === Over the past decade, the OEM/ODM sectors in the Taiwan mobile phone industry have successfully demonstrated an impressive production volume by smartly duplicating the profitable OEM/ODM business model that is used in the notebook/laptop manufacturing industry. In the view that mobile phone is becoming the next hot high-tech industry, many enterprises in different domains extensively move into this industry with tremendous investment. It has been seen that the investment profit is quite satisfactory at the early stage. However, after experiencing the economical bubble crisis and the decrease of production volume, the overall profit is now descending rapidly. This in turn results in that many uncompetitive companies withdrew from the market and the rest is attempting to look for a new and better business model to maintain their competitiveness. Consequently, this research thesis conducts a case study where a case company in the mobile phone industry is invited to participate. The research issue is to derive the findings about the pros and cons of adopting a new business strategy that is from pure mobile phone OEM/ODM to vertical integration in 2005. There are two parts in this research: (1) the external competition analysis is conducted by using five-force analysis technique while internal by using value chain analysis for the original business strategy and (2) the eight integrated economy factors are used to derive the performance of vertical integration strategy. The study interviews the senior and/or high level management of the case company on a base of both face-to-face and written form. Main research findings obtained from the new strategy are as follows.
(1) For the situation of having a considerable difference between unit’s economic scales, the smaller the unit is, the more profits they will obtain in the internal valued activities. (2) For the related knowledge drilling, a downstream unit obtains more benefits than the upstream one. (3) For the issue of ensuring supply and demand in the vertical integration, no significant benefit is found. However, a downstream unit can obtain more protection and guarantee than the upstream one. (4) For the issue of bargaining power offset and cost distortion, no significant relation is found. It is still dominated by market mechanism. (5) For the issue of product differentiation capability, a positive driving force for various product units in the industrial chain is found. (6) For the issue of ensuring the success of establishment of entering or moving barrier, it is found that the key components must be mastered and controlled quite well, in particular for the middle stream units who are unable to effectively maintain an economic scale. (7) For the issue of entering a new business with high investment benefit, it is found that any unit in any position under the vertical integration strategy will have more opportunities due to the collaboration of internal technological knowledge. (8) For the issue of the protection from supply shortage or close of marketing channel, no relationship to the vertical integration is found. (9) For the issue of agency cost, it is found that the cost will be highly influenced by the internal transaction regulations. Discussion and managerial implications are also addressed.
|
|---|
