The analysis of international laptop industry value chain's strategic management performance
Date Issued
2007
Date
2007
Author(s)
Li, Yi-shian
DOI
zh-TW
Abstract
Through superior manufacturing skills and the strong ability of integration with supply chain, the Taiwan laptop manufacturing industry has been rapidly developing in the past few years. However, with a result of corporations (Including ODM companies) in the industry conducting a low price strategy in an effort of increasing the quantity of sales recently, the gross profits of sales has also gradually decreased at the same time. In this article, I will be doing analysis of the researched companies’（Brand companies and ODM manufacturing companies in this industry）operating strategies and financial performance in order to measure the outcome of the strategies they have used. In addition, I will also be doing an analysis to test if the laptop industry applies to the smile curve theory that has been describes as: The Brand companies will focus on the right side of the curve’s (Marketing and service), which leads to more value compared with manufacturing companies that focus on the bottom of the curve (Manufacturing). I will be using an example on what Korea manufacturing companies did to correspond to the industry environment change in order to make suggestions on how Taiwan laptop manufacturing companies could mimic at the end of this article.
After my research, I discovered that the laptop manufacturing companies that I chose (Quanta, Compal, and Inventec ) showed a downward trend of gross profit every year. Also, their average gross profit is lower compared with the laptop brand companies that I selected (Dell and HPQ). This result also indicates that the marketing and service activity at the right side of the smile curve can produce more value to corporations than the manufacturing activities which is located at the bottom of the laughing curve. At last, I will suggest Taiwan laptop manufacturing companies to keep on the improvement of product quality and also to seek for a development of a more effective product delivery method. Moreover, continuity of strong R&D investment to make their products’ differentiate from other competitors’ and also to keep manufacturing cost low to assure their sales can yield the profit. Thus, by strongly investing in R&D, companies can integrate the smile curve’s manufacturing side and R&D side which will lead to a much higher value for corporations.
Subjects
筆記型電腦
laptop
SDGs
Type
other
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