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

Exploring Dual Business Model Choice of Brand and OEM Businesses 82 Exploitative products: As technology matures, buying volume usually increases because OEM buyers have no interest in engaging in low-volume exploitative product business. Thus, suppliers can maximize market share and profits for the product. In this situation, considerations on long-short term outcomes is the major driver for choosing dual BMs. Exploitative products face “things as refinement, choice, production, efficiency, selection, implementation, execution” (March, 1991). Their main purpose is to create more short-term and project-based outcomes for supporting exploration at the next stage (Lavie et al., 2010). Our research found that AV-Firm changed product outlook or fulfilled reliable delivery for most OEM products. Table 4 shows that PC makers in 2009 requested reliable tuner production and delivery. As a result, AV-Firm earned 42% of revenue and 18% of net profit from brand business (see Table 5). Conversely, it had a huge OEM short-term outcome between 2009 and 2015. Another example is Epsilon, which requested a change to the appearance of the network video recorders. Compared to brand business, which requires a considerable length of time to gain stable and long-term outcomes, these exploitative products bring in short-term and variable outcomes under time-to-market and risk control, which are critical for OEM buyers’ decisions. Thus, focal suppliers’ most important motivation is balancing long-short term outcomes.