The Research of Key Success Factors in IC Distributing Industry

An electronic component distributor plays an important role in the worldwide electronic supply chain. It is the bridge between principals and customers. For principals, an electronic distributor helps to promote products; for customers, it helps to solve technical problems before mass production and speed up the development of new products.

With the trend of 3C integration, the role of an IC distributor is gradually changing. Not only having the buy-and-sell relationship with its customers, nowadays, IC distributors have to involve more in the design process and offer comprehensive solutions to help customers speed up mass production.

Meanwhile, with the effect of “Economies of Scale”, “Enterprise Integration” and the accelerating manufacturing facilities migration to China, IC distributors are facing thinner profit margin. The scenario undoubtedly makes IC distributors exposed to more tough challenges from its principals and customers.

The research adopts case study method and conducts interviews with three IC distributors with different business models; and concludes the five key success factors in the electronic component distribution industry: the ability in technical support, financial resources control capabilities, information system integration, globally competitive product lines and the sales geographical coverage.