The Entry Mode and Strategy of Taiwanese IT Brand Products in the European Markets
Date Issued
2005
Date
2005
Author(s)
CHANG, SHUN-HSIANG
DOI
zh-TW
Abstract
OEM/ODM model has been a dominant business model for Taiwanese companies to gain global competitiveness, especially in the IT industry sectors. However, as the industry is getting matured and concentrated, the OEM/ODM model has reached razor-thin profitability level. Therefore, developing own-brand businesses has become the most critical strategic issue for Taiwanese IT players. For own-brand business, with multi-national and multi-lingual characteristics, Europe has been one of the major export markets and becomes the most attractive market to explore for Taiwanese brands. However, there are still quite a few successful stories so far.
The purpose of this research is to examine how leading Taiwanese IT brands develop market foothold and dominance in the European markets through in-depth case studies, with the hope that our findings could provide practical guidance to perspective entrants. We especially focus on entry modes these firms undertook, reasons driving differential entry decisions, and control/coordination mechanisms adopted for implementing business strategies.
Our research results show that: (1) the entry modes of Taiwanese brands are very likely to be limited by the scarcity of resources and qualified managers possessed by the entrants; (2) the management competencies of Taiwanese brands are the key to successful internationalization.
We suggest that Taiwanese brands shall both take direct investments and a tight control mode over foreign subsidiaries in order to accumulate their international marketing and management competencies. This study also proposes an entry mode selection matrix based on “brand management competency” and “multi-national organization control” for practical usage. This study further suggests ways of building international brand management competencies based on required headquarter functions and key successful factors of own-brand development.
Subjects
歐洲市場
品牌經營
進入模式
組織控管
European Markets
Brand Management
Entry Mode
Organization Coordination and Control
Type
thesis
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