| dc.description.abstract | The Internet has become an indispensable presence for humanity. Among them, Ethernet network switches are fundamental network communication devices in network infrastructure. With the growing demand for high-speed and stable internet in modern society, the development of the network switch industry is receiving increasing attention. This paper aims to generate research conclusions and recommendations through the analysis of market structure, firm behavior, and operational performance, providing reference for government agencies and telecommunications companies.
The research findings indicate that network switches have low substitutability and a diversified production structure. The products have a wide range of applications and scenarios, with different levels of demand elasticity from high-end to low-end. Higher-end models have lower elasticity and a higher chance of escaping price competition. Looking at the basic conditions, the most critical material in the raw materials is the network switch chipset, which is a highly concentrated market. For switch manufacturers, it is essential to prioritize the control of lead time and ensure a stable supply of materials.
Regarding market structure, the top four suppliers hold a market concentration of 68.9%, with an HHI ranging from 2,137 to 2,270. It is considered a highly concentrated oligopoly market. However, due to some core technologies being open to industry-standard management and relatively simple manufacturing processes, the barriers to entry are not high.
Enterprise-grade network switches are defined as a heterogeneous market, and suppliers adopt non-price competition to win orders, providing greater bargaining power. Suppliers continuously introduce new products to adapt to the rapidly changing market. There is intense competition among manufacturers in research and development strategies, as they are willing to invest resources to differentiate themselves from their competitors.
By comparing revenue growth rate, operating profit margin, return on equity, and other indicators, it is found that companies focusing on high-growth markets and producing high-end models demonstrate better operational performance. The prerequisite for these two behaviors lies in the technical strength of the manufacturers. Therefore, research and development strategies have a critical impact on the operational performance of the firms. | en_US |