The Study of the Related Diversification Strategy from Competence-based View- A Case of ASUS Computer Company
Date Issued
2004
Date
2004
Author(s)
Hung, Tsung-Pao
DOI
zh-TW
Abstract
Abstract
Pursing growth has always been an important task for corporations, and diversification is an important method of corporation growth. Since operating from 1990, ASUS Computer Company has grown very fast in capital, sales revenues and after tax net profits. At the beginning, the company only produced the motherboards, and then its product line diversified from the motherboards to more than ten products. The company reacted to the change of the environment by competence leverage and new competences building. Its related diversification growth mode is worthy of research and can be a reference to other corporations.
The content of the thesis includes the review of “core competence”, “related diversification” papers, the case writing of the company’s diversification path, the analysis of the company’s diversification strategy, future developing direction, the conclusions and suggestions.
Under the circumstances of ASUS’s founding, the company decided to develop its motherboard business in the clone market. With its excellent technology ability and quality control, its motherboard product was admired by customers and built high brand awareness. After the success, ASUS was eager for diversification because Intel started to develop its own motherboard business, computer companies sold more and more low price computers, the motherboard industry was mature and the substitute products were developing.
The company started to develop motherboard ODM business besides its original motherboard brand business. To cooperate with its strategic partners (e.g. Intel, Microsoft) and exploit the convergence of computing, communication and consumer electronic products, ASUS did many competence leverage and building activities and diversified its products. Through product diversification the company reduced its risks and increased its revenues.
Subjects
華碩電腦公司
相關性多角化策略
核心能耐
ASUS Computer Company
related diversification strategy
core competence
Type
thesis
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