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Case Title:

BenQ: In Quest Of Global Branding

Publication Year : 2005

Authors: Supriyo Bose, Kumar Satyaki Ray

Industry: Telecommunications

Region:Taiwan

Case Code: BBP0062K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Although contract manufacturing of non-branded products accounted for 63% of the revenues in 2004, BenQ Corporation (BenQ), a leading Original Design Manufacturer (ODM) of Taiwan, decided to implement a two-pronged strategy of contract manufacturing, as well as developing its own brands to ensure stable revenue generation. BenQ planned to increase its revenues from the branded business from 37% in 2004 to about 50% by 2007 in order to become a sustainable global brand and increase its profitability.

The case highlights the paradigmatic shift in the business strategy of BenQ, in its efforts to become a leading electronic goods manufacturer in the world.

Pedagogical Objectives:

  • To discuss the brand-building initiatives of BenQ
  • To understand the business transformation of BenQ from an unbranded business to branded one
  • To understand the competitive forces in branded electronic goods manufacturing industry
  • To critically analyse the business model of BenQ and its sustainability in the long-run
  • To understand the dynamics of the Original Design Manufacturing (ODM) business.

Keywords : Lifestyle design centre, Two legged strategy, BenQ as ODM (original design manufacturer), KY Lee, Two dagger approach, Brands & Branding Case Study, Acquisition of Siemens AG’s handset business, BenQ’s brand equity, DEEP (Design Efficiency Experience and Preference)

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