||With the development of progress, science and technology of the times, the model has shift constantly, 3C industry also changes ceaselessly. PC industry would be a great example as it has huge impact with industry environment change includes market demand downsize and cost variation from 1980s till now. |
Taiwan has largest PC-related ODMs, and also suffers the severe attacks with PC cost below average and market demand decline in more past ten years. It causes ODM hardly to keep gross margin rate, even maintain 3% was difficultly. Hence, ODMs started to go through the vertical integration and expect to obtain more cost reduction.
This study illustrates that LiteON-On Technology Corporation, founded in 1975, was the first company in Taiwan to produce LEDs(Light-Emitting Diodes), proceed 7-in-1 merger in 2013, with completely gathering LiteON IT (ODD)、Leotek (LED lighting)、LSE (Adapter)、Storage 、Liteon Mobile and G-tech (Chassis) and G-pro (MB) system units；this merger can offer Liteon Corp. PC-related SBUs more benefit by the effective concentration of resource and enhancing the overall asset utilization, then resulting in better than market performance strengths and synergies? Or will cause what conflicts?
And hope this also offer one reference strategy model to PC ODMs; who in order to facilitate corporate existence and transformation.