The Study on the Relationship between Strategy Groups and Capital Market —A Case of Taiwan Listed IC distributors
Date Issued
2006
Date
2006
Author(s)
Wang, Min-Huei
DOI
zh-TW
Abstract
With more IC distributors listed on the stock market, more people are becoming aware of this industry. However, the operating performance of each IC distributor is not exactly the same. Either by mergers or acquisitions, IC distributors are able to make big revenue growth and reduce the competition among rival firms. The professional and unique services are emphasized by some IC distributors to meet customers’ needs and provide them with more value-added services. Another business model is based on the niche market. To pursue high profits and get involved in customers’ design projects are highlighted by this model.
This research categorizes Taiwan listed IC distributors into three strategy groups by using public information from listed company data base, with the theoretical supports from the related researches over past years. We conclude the capital market favors “Profit –Oriented Group” most due to the impressive profitability and strong growth momentum; furthermore, the research implies several practical and operational strategies to the industrial players.
The “Profit-Oriented Group”
- Most favored by capital markets
- Close tie-up with principals either by technology transfer to form up a JV
- Or gaining the exclusive dealership
The “Niche-market Group”
- Gaining unique or niche product lines
- Strong FAE technical support
- Early-involvement into customers’ design projects
The “Economy-of-scale and market share oriented Group”
- Operational efficiencies by leveraging scale
- Enhancing bargaining power through scale-up
- Strengthening compositeness in the value chain
Subjects
策略群組
IC通路
Strategy Group
IC Distributors
Type
other
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