A Case Study on the Growth Strategy of a Niche IC Design Company
Date Issued
2008
Date
2008
Author(s)
Chen, Cheng-Lung
Abstract
Every business hopes to last to the forever. Having sustained growth is the premise of that. Entrepreneurs have to face and conquer the challenge everyday that how to keep growing against competitive business environment. Through a deeply studied case, our studies try to explore that how dose enterprise manage the trajectory of competence development and complete the business goal of growth in a fast moving environment. And our studies try to find out the managerial factors affecting the trajectory of competence development.ur studies choose an IC design company as our study target because the growth of IC design companies present the phenomenon of “one generation king of boxer”. That is the performance of an IC design company always goes down following the decline of the star product sales and it is hard to go back the prosperity. This study will provide a deeply analysis for the phenomenon by the exploring the growth trace of case company.ur studies found that small and medium size IC design companies adopt niche market strategy and conduct innovation and product development selectively. In the early stage of a niche-type IC design company, it focused on a single niche market by product development and innovation. After entering the supply chain successfully, the company continues to look for another new product chance in the same product field and try to enlarge the product mix in this product field. Beside, the company starts to build up multiple product line, it tries to use the technical platform to leverage the established competence. he niche-type IC design company uses computer-based and design-based quick-connect technology to leverage established competence and meet the market needs. With the organization system and the proper management of established competence and organization slack, the company adopts diversified market opportunities scanning to guide the new product development strategy, initiate innovation, and build competence. Facing market opportunities, the company operates based on competence-based competition model with continuously building and leveraging competences, and catches the niche market by using diversified niche strategy. Diversified niche strategy as the growth strategy of an IC design company shows slow but steady growth speed. The growth becomes significant only as the niche market turns into volume market.
Subjects
IC Design Company
Growth Strategy
Competence-Based Competition
Organization Slack
Diversified-Niche Strategy
Type
thesis
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