Business Case Studies, Market Entry Strategies Case Study, BenQ Corporation, Entering the Branded Cell Phone Market in China

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Case Title:

BenQ Corporation: Entering the Branded Cell Phone Market in China

Publication Year : 2005

Authors: Kambaloor. J, Shahida Kathawala

Industry: Home Appliances and Personal Care Products

Region:China

Case Code: MES0056B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
The case focuses on BenQ Corporation, a US$3.2 billion Taiwan-based company. By 2001 BenQ had become the largest contract manufacturer of mobile handsets. However, in 2002 the company decided to move away from contract manufacturing and launched branded products. As part of this strategy, in 2004 the company launched branded mobile handsets in China, which was the fastest growing and the most competitive handset market globally. The case gives in-depth information on the characteristics and nature of the Chinese handset market, the various competitors and their strategies. The case simultaneously highlights the market entry strategies used by BenQ.

Pedagogical Objectives:

  • The steps taken by BenQ to move from being a contract manufacturer to a brand manufacturer
  • A comparison of BenQ's strategy with Samsung's
  • The nature and characteristics of the Chinese handset market
  • The segmentation, targeting and positioning strategy used by the various mobile handset vendors
  • The strategy employed by BenQ to enter the mobile handsets market in China.

Keywords : BenQ Corporation; Branded cell phone market in China; KY Lee; Contract manufacturer; Branded players; Chinese handset market; Market entry strategies; Market Entry Strategies Case Study; Acer Peripherals; Motorola; Nokia; Ningbo Bird; Samsung; Global system for mobile communication (GSM) segment; Code division multiple access (CDMA) segment; Original equipment manufacturer; original design manufacturer

Contents : 
Introduction
Industry Background
Cell Phone vs. Fixed Line Subscribers
Manufacturing of Mobile Phones
Distribution Network
Distribution Network in China
Product Portfolio and Pricing
Top-10 handset vendors: Handset sales
Top-five handset vendors: GSM/GPRS and CDMA handset sales
Consumer Profile and Preferences
History: From Acer Peripherals to BenQ Corporation

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