Abstract
The high-tech industries of Taiwan have been well-known for their OEM/ODM capabilities, but they are in a difficult situation that the gross margin continues its downward trend due to severe industrial rivalry and intense pressure of OEM/ODM customers. According to the “Smiling Curve” theory proposed by Stan Shih, the founder of Acer Corporation, both enhancing R&D capabilities and establishing self-owned brand are effective to make a breakthrough and earn higher profits. BenQ has been thriving since 1984; in order to be a global brand, it acquired the mobile handset business of Siemens AG in 2005; it restructured itself since the third quarter of 2006, from the initial emphasis on both OBM and OEM/ODM businesses, the so-called “Two-Leg Walking” strategy, to the strategic priority of OEM/ODM businesses over OBM ones. Besides, its name was changed to “Qisda” while “BenQ” was one of its subsidiaries that’s responsible for the OBM ones. Based on time series analysis, the method of case study research is adopted to review the process of BenQ’s dividing its OBM and OEM/ODM businesses, and look for its motives and consequent outcomes as well.