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

Exploring Dual Business Model Choice of Brand and OEM Businesses 74 Eisenhardt, 2009). It also promoted its product to high import tax countries for traditional TVs, where PC products had lower or zero tax. Its sales coverage reached over 70 countries. Thus, AV-Firm chose a brand-dependent dual BM from 2001-2008, with 62% of its average revenue generated by brand and 38% from OEM (see Figure 2). 4.1.5 PC-TV Tuner (2009) ─OEM-Dependent Dual Business Model Business background: In 2009, AV-Firm developed OEM business with most major PC makers in European markets (for buyer’s background see Table 2). As a result, preinstalled tuners replaced standalones, because the total cost of the former in laptops was lower. Overall, AV-Firm had high product/service innovation potential for this product (see Table 3). It was still the dominant design player. As laptop volume exceeded that of desktop PC’s, the technology standard was for almost zero defect product verification and production. AV-Firm’s products were fine-tuned by Japan’s stringent requests, and they were awarded the Sony green partner award certification. AV-Firm did field tests worldwide to verify its tuner TV signal reception capabilities, which became an entry barrier for competitors. However, AV-Firm had weak segment-making capabilities . It focused on production and verification rather than on novelty creation as the product matured. Its channel bonding was good as most PC makers relied on AV-Firm’s special tuner know-how with 80% market share in the preinstalled market. AV-Firm had limited marketing activities as more users bought laptops with tuners. The VP of sales explained the business transition: “ We started to enter maintenance mode in the retail market and directed most of our resources to support the demands of buyers. Thus, our marketing gradually weakened. ” Thus, AV-Firm chose an OEM-dependent dual BM in 2009, with 42% of its average revenue generated by brand and 58% from OEM (see Figure 2). 4.1.6 PC-TV Tuner (2010-2015) ─OEM-Reliant Dual Business Model Business background: During this period, mobile devices and IP-TV gradually replaced preinstalled tuners (see Table 2). Thus, the volume of both branded and OEM tuners dropped significantly. Only high-end laptops and desktop PCs had built-in tuners. Overall, AV-Firm had low product/service innovation potential for this product (see Table 3). It was the dominant player at its height, but the technology standard moved from analog to digital TV. This damaged AV-Firm’s position as the leading technology designer. Also, IC vendors lowered the barriers to entry by integrating functions into a few chips.