Abstract
MCU is a small scale SoC consisting of ROM, RAM, CPU, and I/O in one chip. It is designed as a self-functioned component without any external circuits support. As so, MCU is regarded as a small-sized microcomputer used in product development for cost saving, energy saving, and size reduction. It has become a promising key component in new product design. Applying “resource-based theory” and “industrial life cycle model”, the competitive strategies of a local MCU design firm was examined. The core competence and product development strategies from the initial design stage to the later sale/marketing stage are thoroughly studied. Their linkage and critical success factors are also reported. The results indicate that high quality, low cost, and innovativeness are the important competitive forces for the market share.