Business Diversification of a Technology Company—Study of STB Industry Entry Strategy
Date Issued
2011
Date
2011
Author(s)
Lin, Yung-Da
Abstract
It is always challenging for a technology company to expand its scale through diversification. In this thesis, we take one technology company as an example to study how a new business unit in this company finds its way to enter into STB industry.
We run five forces analysis for STB industry at first to get the whole picture of it. There are many different STB categories, and it is quite different for the game rules in each STB category. This new business unit needs to determine the targeted STB category at first, after taking all factors into consideration, IP STB is the appropriate choice we make.
The following step is to analyze the strategy to enter into IP STB industry, including targeted customers development strategy、product features development strategy and solution vendors selection strategy, and we need to consider the possible impact of new technologies and new trends, such as Triple Play and OIPF. Then we introduce strategy diamond model to review the five elements of strategy in detail, and also adopt the concept of value net and co-opetition to help to develop IP STB industry entry strategy for this new business unit. After the strategy is determined, we start to review the resources and competence of this company and new business unit to find out the key advantages and disadvantages. We leverage the key advantages to form unmatchable differentiation to targeted customers, and try to build sustainable competitive advantages. On the other hand, we also manage the key disadvantages to lower down the possible impact of them. We conclude the strategy and actions for this new business unit to enter into IP STB industry with 3 main themes—to compete against close architecture with open architecture、focus on small targets、own key technology to win deal with good services.
It is a tough challenge for all new comers to enter into highly competitive STB market. In this thesis, we use tools to help this new business unit to find out a proper strategy to enter into STB industry and also come up with actions to build sustainable competitive advantages and to manage key disadvantages.
Subjects
IP STB
Triple Play
Value Net
Co-opetition and Strategy Diamond
Type
thesis
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