Abstract
In the Internet era, demand of the market changes rapidly, new networking products are designed and launched ever so quickly, and people have a significantly stronger demand for bandwidth. With the drastic change in management environment and globalization of the industry, Taiwan’s networking OEMs and ODMs are facing competitions not only from domestic rivals but also from the mushrooming companies in China. In order to maintain competitive and continue to grow, network switch businesses must first strive to build core abilities as well as to enhance value proposition, and then connect all related groups of the upstream and downstream links in the value chain to ensure smooth cooperation, thus securing their own positions and profit margins. This thesis, with a focus on integrating the demand of upstream chip suppliers and the product demand of downstream target brand customers, studies how network switch businesses build core abilities and enhance value proposition with the change of market environment and the product demand of target brand customers, as well as how to speed integrating product development so that target brand customers can launch their products fast enough to secure the best profit opportunities. For a business to find a proper competitive strategy, timely adjustment of resources and direction is an important issue. This study, conducted mainly with the qualitative research method, examines the case in the current development of networking industry. Through the analysis of the five forces, SWOT, and product lifecycle, this thesis aims to design a feasible development model based on the core competitive abilities and the change in the industry trend in the hope that the conclusions and suggestions may serve as reference for management in finding future development direction.