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Cases Study on Strategies Research of IT Distributors Enter China Market
Hardware Distributors;Competitive Strategies;Channel Functions
|Issue Date: ||2011-12-01 13:29:17 (UTC+8)|
Mainland China has released its interior-need after joining World Trade Organization (WTO), thus it becomes the most popular business environment to invest in the world. The trend of going to Mainland China for business has blown to Taiwan. As hardware distributors are now facing violent competitive environment and the gross rate of hardware output downturn in Taiwan. They need to seek a best place for business investment in order to get more profit. Going abroad to Mainland China has thus become a main idea. Meanwhile, Mainland China has its advantages attract Taiwanese business man such as vast hinterland、lower laborer cost and non language barrier. However, to launch into a business in Mainland China Taiwanese hardware distributors have two strong challengers who are locals and famous manufacturers from around the world. With these two difficulties, the most important thing is learning from our own advantages and previous successful experiences to find out what the best competitive strategies are when having a business in Mainland China.
The research was mainly to investigate three biggest hardware distributors running businesses in Mainland China. The methodology adopted in this research is case study by consulting Porter’s framework on competitive strategies and computer product channel functions. Comparing these strategies with different hardware distributors in order to find out the difference between their strategies and how they cope with the effects of different competitive strategies and how they expand company in the future.
According to results, it was found that open-end distributor has built its own economy of scale. In order to reduce cost of sale product, open-end distributors setted up more branches and center of collaboration for sale large number of product. Open-end distributor was doing very well with cost leadership strategies. Increase market share by using this strategies to reach economy of scale. Close-end distributors does not have amount of capital thus not easy to reach effective economy of scale. When its business is not able to compative with big distributor, its market became very small and eventually turned to have business at promotion house electric appliance to shopping mall dealar. In order to meet different end-user’s need, close-end distributor lead in more famous brands and products for shopping mall. Also by setting more brances and wide logistics, end-users can buy what they need in a time at shopping mall. Customer strategie is aim at providing what distributors needed in their shoping mall and convenience for end-users that they can buy what they want in a time. Mixed-end distributors are not only aim at sale its own computer brand also having computer manufacturer’s support getting lower cost to exert the advantage of cost leadership strategy. The purpose of shop on internet is support the brands they needed and its own brand, however, the speed of delivery to end-user is less concern. Three cases study are aim at stock integration strategies, they need to do well in stock controlling in order to create a bigger profit and to make sure to meet customers’ requirements. Regarding information technology of strategies, three of distributors have the same requirement that is to enhance their competitive competence by using this strategy.
|Appears in Collections:||[Department of Business and Administration] Thesis and Dissertation|
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