| dc.description.abstract | In the early days, Taiwan’s electronics manufacturing industry focused on the development of Contract Manufacturing business. Through obtaining Contract Manufacturing orders from major international manufacturers, they learned the technical knowledge and management systems of major international manufacturers. However, as market competition became more and more fierce, Taiwanese contract manufacturers faced with the pressure of competition in the same industry and customer requirements to reduce fees, in order to get rid of the dilemma of meager profit, in order to improve the profitability of the company and continue to operate, many companies have begun to think after years of accumulated manufacturing experience and cost management capabilities. Establishing its own brand, under the background of developing OEM business and own brand at the same time, it has become a common way to raise the brand by OEM. However, when the brand business has grown to a certain extent, it begins to threaten existing OEM customers. Facing the conflict between the brand business and the Contract Manufacturing business, customers often respond by drawing orders or reducing orders. At this time, the company is facing a difficult decision, whether to separate the Contract Manufacturing from the brand business?
This study adopts the case study method of qualitative research, taking the spin-off of Pegatron by Asustek as a case study to explore whether the corporate spin-off is beneficial to the operating performance of ASUS and Pegatron. A comparative analysis with peer companies shows that after the separation of brand business and Contract Manufacturing business between Asustek and Pegatron, the two companies are reintegrating their own resources to refocus on core competitiveness and implement professional business. The operating performance is significantly better than the peer group companies. After the spin-off, Asustek was able to focus on brand marketing and business promotion, and its share of the global notebook computer market has increased. After the spin-off, Pegatron was able to focus on Contract Manufacturing operations and win new customers and orders. In recent years, both revenue and profit have grown substantially. This corporate spin-off between ASUS and Pegatron is a successful typical case in recent years and can be used as a reference for companies to resolve conflicts between OEM and Contract Manufacturing. | en_US |