BenQ Corp.'s Failed Acquisition of Siemens' Mobile Devices Division

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR250
Case Length : 17 Pages
Period : 2005-2006
Pub Date : 2007
Teaching Note :Not Available
Organization : BenQ Corp. and Siemens AG.
Industry : Telecom
Countries : Worldwide

To download BenQ Corp.'s Failed Acquisition of Siemens' Mobile Devices Division case study (Case Code: BSTR250) click on the button below, and select the case from the list of available cases:

Business Strategy Case Studies | Case Study in Business, Management, Operations, Strategies, Case Studies


For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

"It's a deal too good to be true for BenQ. They get the whole business and a decent brand for free." 1

- Daniel Wang, an analyst at brokerage Primasia Securities in Taipei in 2005.

"It's natural they (Siemens) act surprised, because it wouldn't be very ethical to say they knew the mobile division was going to go down so they wanted to get rid of it. I'm not saying they knew this, but [I'm] pretty sure they knew this [unit] wasn't doing very well." 2

- Brad Akyuz, senior analyst in the mobile devices division of Current Analysis in 2006.

"They (BenQ) waited until the Siemens money was used up and then simply turned off the tap." 3

- A sector analyst in 2006.


In November 2006, BenQ Corp. (BenQ) announced that it would cut 400 jobs at its Shanghai, China plant. This unit had belonged to the mobile devices division of Siemens AG (Siemens), a major German engineering and electronics company, up until October 2005, when it, along with plants in Germany, Brazil, etc., and R&D labs in Germany, Denmark, and China were sold to BenQ. After acquiring the division, BenQ renamed it BenQ Mobile GmbH (BenQ Mobile). BenQ Mobile had, in September 2006, filed for bankruptcy protection after a year of heavy losses. BenQ was a prominent Taiwanese electronics and computer peripherals manufacturer. As of 2005, it was also the sixth largest manufacturer of mobile phones in the world.

Though it largely acted as an OEM for global brands like Nokia, Motorola, etc., it also sold mobile phones under the BenQ brand. The company had big plans to expand its operations and build its brand all over the world.

In October 2005, it acquired the loss-making mobile devices division of Siemens. With the acquisition, BenQ planned to sell co-branded mobile phones (BenQ-Siemens) in addition to the BenQ and Siemens brands. Siemens started manufacturing mobile phones in the late 1990s. Despite producing high quality phones, it was unable to make a mark in the highly competitive industry, and the business began incurring huge losses. In 2005, after yet another year of losses in the mobile phones business, Siemens decided to exit the business. However, securing the future of its employees was high on its list of priorities. Therefore, it looked to sell the division to a company that would assure the continuity of the division's operations in Germany...

BenQ Corp.'s Failed Acquisition of Siemens' Mobile Devices Division - Next Page>>

1] "BenQ may be getting what it paid for,", June 20, 2005.

2] "Siemens funds former employees,", October 03, 2006.

3] "BenQ's German workers blame former owners Siemens,", September 29, 2006.


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.