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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. The case has scope for discussion on the following points: (1) the steps taken by BenQ to move from being a contract manufacturer to a brand manufacturer; (2) a comparison of BenQ''s strategy with Samsung''s; (3) the nature and characteristics of the Chinese handset market; (4) the segmentation, targeting and positioning strategy used by the various mobile handset vendors; and (5) the strategy employed by BenQ to enter the mobile handsets market in China.
Location:
Industry:
Other setting(s):
2004

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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. The case has scope for discussion on the following points: (1) the steps taken by BenQ to move from being a contract manufacturer to a brand manufacturer; (2) a comparison of BenQ''s strategy with Samsung''s; (3) the nature and characteristics of the Chinese handset market; (4) the segmentation, targeting and positioning strategy used by the various mobile handset vendors; and (5) the strategy employed by BenQ to enter the mobile handsets market in China.

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Location:
Industry:
Other setting(s):
2004

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