| dc.description.abstract | As PC-related products grew in popularity, the Taiwan motherboard industry gained a dominant strategic position within the market. It led the motherboard upstream component industry, as well as becoming an important resource for the downstream PC industry.
Taiwan motherboards have consistently out sold their rivals worldwide, with a market share which has peaked as high as 83%. In the industry which includes design, manufacture and sales, Taiwan motherboards hold a leading competitive edge through critical circuit design technology, upstream/downstream industries, integration capability and supply chain management. Its direction of trend and cultivation of talents extends to all of the ICT (Information Communication Technology) related industries. Unfortunately, with the PC market becoming more and more saturated, overall market demand has slowdown. In order to maintain its hold as a market leader, an intense competitive pricing strategy was needed. The downside to this pricing strategy was a significant decline in profit, resulting in a crowding out effect.
The emphasis of this paper is to highlight a competitive edge strategy, utilizing price competition for a non-leading motherboard supplier in a fiercely competitive market, as well as providing solutions and directions for reference. This paper is based on the S-C-P model (Structure-Conduct-Performance) to analyze the motherboard industries’ structure, conduct and performance. After further analysis of the market and its suppliers, it became quite obvious. If competition between Asus and Gigabyte continued, a ＂winner-take-all＂ scenario would’ve emerged, leaving no room for non-leading suppliers. As a result, in order to gain a foot hold in the market, non-leading motherboard suppliers would need to focus strongly on their business and market strategy.
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