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

75 NTU Management Review Vol. 29 No. 1 Apr. 2019 AV-Firm also had weak segment-making capabilities . It maintained tuner features for the mature market. It focused on non-PC market OEM projects with huge volumes such as set-top boxes. It maintained marketing activities in countries where analog TV systems persisted, to PC users who still watched TV on PCs, and for non-PC applications. Thus, AV-Firm chose an OEM-reliant dual BM from 2010-2015, with 22% of its average revenue generated by brand and 78% from OEM (see Figure 2). 4.1.7 Network Video Recorder ─OEM-Dependent Dual Business Model Business background: Many famous firms such as GE, Bosch, Sony, and Honeywell also sell security systems, including network video recorders (NVRs) (see Table 1). As their brands are perceived to have higher value, their customers are willing to spend more. In 2009, a Japanese branded firm (Gamma, hereafter) asked AV-Firm to design an OEM NVR (for buyer’s background see Table 2). AV-Firm had been in the video security industry since 2000. For this project the asymmetrical competition between seller and buyer allowed AV-Firm to sell its product with its brand to system integrators. The PM Director of Gamma explained: “ Each product reflects basic knowledge of clients’ needs. The real requirement of each client is a solution. AV-Firm must understand how to become a solution provider to meet clients’ demands. ” Thus, Gamma focused on reseller distribution. Overall, AV-Firm has high product/service innovation potential for this product (see Table 3). There are many players but none are clearly dominant, with no standard communication protocols. The entry barrier was engineers’ ability to achieve compatibility with other vendors’ devices. However, AV-Firm has weak segment-making capabilities . AV-Firm spent a lot of effort customizing its NVRs to work with different vendors’ IP cameras, without spending effort creating product novelty. However, AV-Firm’s channel bonding capabilities were sufficient to meet system integrators’ special demands. The BU head explained: “ Our firm has highly experienced and competent people handling special requirements that Gamma is reluctant to take on. These need a flexible business policy. ” For marketing execution, the VP of R&D explained AV-Firm’s weakness: “ Any security system is very complicated and includes many components. Gamma can provide a complete and reliable solution to customers. We cannot. ” The BU head added: “ Gamma’s users have large budgets, so they buy many branded products to ensure product quality and reliability. Our users don’t buy in bulk. They buy cheaper NVRs to integrate into their own solution for special project-based applications. ”