Abstract
This paper analyzes the No.1 Networking manufacturer in Taiwan - D-Link Corporation. D-Link was founded in 1986, from 1986 to 2003, D-Link went through four important stages (1). Focus on developing D-Link OBM (Ordnance Bench Mark) business with few non-brand businesses, (2). Focus on D-Link OBM business, at the same time, leveraging the capabilities and expertise of ODM/OEM clients to assist D-Link in improving the Product Development and Management System, and Quality Control System on production, (3). When ODM/OEM opportunities was booming since 1995, D-Link started changing its core mindset and system in order to gain more growth from ODM/OEM business, and utilized the Dual-Axis strategy to catch both OBM business and ODM/OEM business, (4). D-Link modified the Dual-Axis strategy to adopt more and more challenges from internal and external environment. Finally, conflicts were likely to break out between the OMB and ODM/OEM: ODM/OEM clients had serious concern because OBM was doing better and better, so this serious concern caused ODM/OEM department had bottleneck to gain more growth, and the Strategic Outsourcing Partners had serious concern as well because D-Link ODM/OEM department had strong R&D capability to take over their business, so this situation would damage D-Link OBM at the same time. Furthermore, employees had critical problems because there were mindset and process conflict between OBM and ODM/ODM process and nature. It became to a dilemma to D-Link for keeping both OBM and ODM/OEM under one organization. Feb. 2003, top management team had to take action to deal with this crisis from external and internal right away. OMB or ODM/OEM? Create new sustainable strategy rather than the Dual-Axis Strategy? This paper adopts case study methodology to analyze the evolution of D-Link Corporation and the dilemma that was happened to the company in the end, and have some analyses and conclusions.