A Case Study on Diversified Growth and Corporate Transformation
Date Issued
2015
Date
2015
Author(s)
Lin, Yu-Shen
Abstract
The global IT industry has experienced significant structural change due to technology paradigm shift. As the manufacturing powerhouse for the IT industry globally, Taiwanese electronics industry is therefore facing a huge pressure of transformation..How can an industry player maintain its competence to survive from sever competition in the existing market while explore new growth opportunities in unfamiliar areas? Such strategic and organizational challenges motive the present thesie research. To achieve our research goals, we conduct a case-based exploration. Guided by several existing theoretical insights, such as industry analysis, core competency, and businesss model design, we study the processes of competence leverage and renewal occurred in the case company during the past years. In addition, we also examine how the company change its organization structure, processes and corporate culture to align with its new business configuration so that the transformation can reach its desired goals. Throughout the case exploration, we found that a firm has to immediately examine its sustainability of the existing core competencies when facing structural change. Priority issue will be to see if the existing core capabilities could be extended to capture new opportunities, which will be the most cost effective way of diversified growth. The next feasible alternative will be to invest in developing new competencies since it may take at least three years to create new competencies. While in the process of competence renewal, the organization has to ensure its internal managerial coherence by designing new divison of labor and managing synergies between new and existing businesss units. The establishment of corporate headquarters become critical to the success of corporate transformation. Only by constantly drive new growth curves can a company successfully adapt to external changes.
Subjects
Core competencies
Business Model
Diversified Growth
Corporate Headquarters
Type
thesis