臺大管理論叢 NTU Management Review VOL.29 NO.1

71 NTU Management Review Vol. 29 No. 1 Apr. 2019 4.1.2 Video Conferencing Devices─Brand-Dependent Dual Business Model Business background: Around 2010, to meet the needs of small and medium-sized businesses (SMBs), AV-Firm was the first company to design video conferencing systems with price ranges of under $1500 per end point and $3,000-$8,000 per video server (see Table 1). Famous branded firms such as Cisco, Polycom, and Sony offered products costing $6,000-$10,000 per end point and $10,000-$30,000 per video server. Their major applications are in managerial meeting rooms in large companies, instead of SMBs. Since 2014, AV-Firm has developed an OEM business with a Japanese firm (Beta, hereafter), one of the most famous computer and communications firms in the world (see Table 2 for buyer’s background). There is no conflict between Beta and AV-Firm. Beta’s Figure 2 Why and How Suppliers Choose a Dual Business Model Why How External motivation OEM-dependent Weak Segment-making capabilities Strong (Network video recorder) (PC-TV tuner 2009) (PC-TV tuner 1999-2000) (PC-TV tuner 2010-2015) (PC-TV tuner 2001-2008) (Video conferencing device) (Document camera) Product/service innovation potential OEM-reliant Low High Brand-reliant Brand-dependent Internal motivation or • Cross-signal effect • OEM enables brand • Brand develops OEM • Organizational learning • Long-short term outcomes • Resource pooling • Long-short term outcomes • Resource pooling • Organizational learning • Arrow means from one type of dual to another type of dual. • ↗ means complementarity and ↙ means substitution. Exploration or Exploitation