Abstract
The mobile phone market in Taiwan has been regarded among the leading countries in usage that almost every one in the island owns a cell phone. The unique communication features of the mobile phone have made it appealing to worldwide markets. A survey data of TRI in 2006 shows that the global mobile phone market is approaching 868 million sets with a revenue amount in hundreds of billion US dollars. The Taiwan mobile phone market size in 2006 will reach 130M sets; it represents around 15% of global market scale and the number is rising. However, as for the global handset ICs (including mobile base band and multimedia chips) shipping volumes by Taiwan’s manufacturers only barely reach 10% of the global market. Considering the demand pull and the fierce global competition among the major manufacturers, proper strategy plan is then become crucial for Taiwan’s firms in this global competition game. Applying “strategic matrix model” and “value chain model”, the competitive strategy of a Taiwan major cell phone’s multimedia chip IDM firm was examined. The tactics of “blue ocean strategy” is also applied for practical guidance. The results indicate that a wider cell phone application domain is worth exploring for more market potentials. From the technological perspective, the integration and compatibility of cell phone baseband chip and multimedia chip is a potential treat for the company. As for the firm, cross-department cooperation and external alliances are the means for the future competence development and niche market expansion.