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Case Title:

Taiwan's OEM Industry: Acer's Branding Dilemma

Publication Year : 2004

Authors: Gayatri. D & T. Phani Madhav

Industry: Engineering, Electrical and Electronics

Region:Taiwan

Case Code: INA0025

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Taiwan has been enjoying a growth in the IT industry with a thrust on OEM/ODM (original equipment manufacturer/original design manufacturer) models, contrary to the developed companies' emphasis on brand building. Taiwan came to be known for anonymous products manufactured on behalf of their clients. Acer Communications & Multimedia's contract-manufacturing division supplied computer peripherals and other electronic components to multinationals like IBM and Sony, and at the same time also manufactured and marketed LCDs (liquid crystal displays) and mobile phones under its own brand name. With Acer's two businesses running simultaneously, a conflict of interests arose with the clients. To overcome the problem, Acer spun off its brand-name business as a new company – BenQ and the contract manufacturing business was named Wistron Corp.

Pedagogical Objectives:

  • To discuss the branding strategies adopted by BenQ to establish its brand name, and its transition from a 'no name no logo' product, to a branded business
  • To discuss the viability of BenQ's branding strategies when others in the industry abstained from brand-name business.

Keywords :  Acer Communications & Multimedia, Brands & Branding Case Study, BenQ branding, Conflict of interests, OEM, ODM (original equipment manufacturer, original design manufacturer), Taiwan contract manufacturing, Product customisation, Brand building, Brand name business, Globalisation, PC industry, Wistron Corp

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