dc.description.abstract | Merge is one of the methods of company grow up, the meaning of growth to a company is including revenue, profitable, market share, step in new industrial and product lines deployment….
The conclusions of the study, both companies are benefited from this merge. Wistron is going to approach 30% of revenue growth up in Year 2009, this industrial horizontal integration is one of key contributions because of the sales capability has been enhanced. LiteOn has gathered her product lines onto high profitable components and resumed profit to above 10% after sold Digital Display BU (DDBU) to Wistron, even the DDBU has shared almost 45% of revenue.
Besides company strategic changed by merge activity, in the mean time the Supply Chain (upstream) and Customer Relationship (downstream) are also gotten changed.
LCD (Liquid Crystal Display) assembly manufacture business has lower profit even less than 3%, however, Wistron is using the corporate resources in order to get the best cost and stability of supply, for example, LCD panels and IC components. Total solution include LCD display product line do gain the better customer relationship.
The decision made for LiteOn to give up LCD manufacture industrial is due to corporate strategies and focus on products of components and modules which have high profit. And focus on manufacture customers to instead of branding. Even the revenue and business scope are impacted. However, as expected the profit and finance are getting healthy. Besides do earn income from this merge, the most important is DDBU saved from the risk of terminated.
The overall review from supply chain, product line to customer end is the way for decision making of merge strategy. Both companies of seller and buyer must gain benefit from it, not loss.
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