| dc.description.abstract | With applications of its integrative business model, MediaTek Inc., a latecomer of IC design service for Smartphone, Blu-ray DVD, and digital TV chipset, has soon become a leading role in these fields. Also, the company now captures top market share in optical storage IC industry and has entered top 10 IC design company rankings around the world. However, given all these promising prospects, Mediatek’s annual net income and net profit margin for the past two years plunged significantly, instead.
Enterprises need a solid and sound business model if they want to pursue a sustainable growth. Through the analyses of Mediatek case, we are able to identify elements to its success and flaws of its recent policies in the related business fields, and aim to render some useful ideas for rebuilding Mediatek’s competition capacity in the future. This study uses the 8+nation model, the 8+business model, and the 8+Finance and Accounting model proposed by Hann-Tarn Jeng (2013) to analyze the environmental changes and derive the “Opportunities and Threats” faced by Mediatek during the past ten years; to examine the business model of Mediatek and derive its “Strengths and Weaknesses”, and to demonstrate the firm’s operating performances and financial conditions in different periods with quantifiable data.
The results of this study are as follows.
1.Base on the 8+ nation model analysis, this study finds that the Chinese government put much effort to support the nation’s IC Industry development. After deregulation of the cross-straight trading and investment, Taiwanese IC firms have to initiate more competitive recruiting policies to keep the talents to stay in the home country.
2.Using the framework of 8+Business Model, this study describes the evolution of MediaTek’s business model in various stages of product development. In the initial stage, MediaTek successfully used the “time to market” architecture to quickly adjust its product development process, so that customers can shorten the production schedule and reach mass production rapidly. However, in the later stage, there existed disagreements among the R&D teams, which delayed the product development. The firm has solved the collaboration problems recently.
3.Base on 8+Finance and Accounting model, we analyzed different periods of the operating performance and financial condition of MediaTek. The results showed that the early stage of MediaTek saw its revenues and profits a strong growth momentum. However, during the period of the 2011 and the first half of 2012, the revenues and profits have deteriorated due to the failure of converting Smartphone product lines.
4.Finally, this study provides some suggestions concerning how MediaTek should change its business model in the future:
(1)In the aspect of “Design corporate governance system and strategic directions”, the firm should design corporate governance mechanisms to respond customer demands quickly.
(2)In the aspect of “Establish the company’s mission and commitment”, the firm should understand the market environment of their target customers.
(3)In the aspect of “Build up management team and administrative organizational skills”, the firm should focus on employees training and skills enhancement and inheritance.
(4)In the aspect of “Integrating available resources and leverage the company structure”, the firm should strengthen internal resource integration, particularly, the integration of R&D teams.
(5)In the aspect of “Focus on customer value propositions and the value of the company”, the firm should always think one step ahead than the customers and understand the end users’ needs.
(6)In the aspect of “Expand business territory and strengthen risk management”, the firm should adjust the customer base, and expand market presence. | en_US |