Analysis of Growth Management Strategy in the mobile chipset industry:the case of MediaTek

In the past, MediaTek achieved great success in the ShanZhai market. However, because MediaTek failed to grasp the trend of 3G smartphone chipset, and the competition from Mstar and Spreadtrum, MediaTek’s revenue shrank 30% in 2010 and 2011. But in recent year, MediaTek return to glory due to Chinese smartphone market. Moreover, MediaTek turn to high-end market from low-end market by launching octa-core mobile chipset, in 4G era, MediaTek will challenge the global, high-end market and the largest competitor, Qualcomm.

This research firstly focuses on analysis of the featured phone industry, 3G smart phone industry and 4G smart phone industry and chronologically divided to: ShanZai Legend(2003~2009), Loss Years(2010~2011), Return to Glory(2012~2013), Toward Mainstream (2013~2014) and Flip Market(2014~) by Porter(1980) Five Forces Theory. Secondly, the research introduced evolution of the organization change, values and philosophy, patent and technology, product positioning and target market by Teece(1997) Dynamic Capabilities Theory. Finally, the research analyzed the factors of how MediaTek become a leader from a follower, how to respond to other competitor and how to shift the strategy by Christensen(1997) Disruptive Innovation Theory.