Business Mode Improving Research On Handset Product Line Of Mediatek

With the rapid growth and fast expansion of mobile phone terminal products market as well as the appearance of Chinese characteristics, reasonably-priced and good-quality "copycatting phone", the mobile phone industry in the world especially in China is developing quickly.Taiwan MediaTek Inc (MediaTek) practiced the innovative "product life cycle theory" by using efficient business operation, dramatically reducing product cost and using original "Turn-key solution" strategy (integrating chipset, hardware, software, mobile applications and even designing public-mode mobile phones and housing definition for the customer in advance) so that the downstream customers was able to release mobile phone end-products in a very short period. As a provider and solution maker of mobile phone chips, MediaTek has achieved great success in grabbing the mobile phone market share. So far MediaTek has held more than 90% of China mobile phone market share. As a result, the traditional European and American chipset suppliers withdrew from the related market in mobile phone industry. MediaTek has not only provided handset chipset for LG, Lenovo and other mobile phone companies, but also become the major supplier of touch-screen controller and Bluetooth chipset.However the mobile phone market environment has changed immensely. The local competitors are becoming stronger and stronger in technology development and market power. They have the advantages of lower cost and more efficient business operation compared with American and European competitors. So the MediaTek's advantage of low cost and business operation efficiency is disappearing gradually. At the same time, these local competitors have mastered MediaTek's"Turn-key solution"method and applied the business model to their company operation. It is obvious that MediaTek's competitive advantage is being reduced. Also because of the emergence of new mobile phones such as 3G and its expansion to the international market, MediaTek has to face new international mobile phone chip competitors such as Qualcomm, ST-Ericsson and so on. These mobile phone chipset giants have more advanced technology and IPR. In a word, MediaTek's original business model is being challenged.In the paper, the competitive strategy, financial analysis and Marketing knowledge are utilized to fully analyze MediaTek's current internal and external business environment. In chapter 1, the paper introduces the situation of MediaTek company, the development changes in mobile phone chipset market, significance of the topic, the research background the and the research contents; In chapter 2, the paper analyzes transformation of the mobile phone industry chain, the emergence of copycatting mobile phones as well as the emergence of new competitors, customers of MediaTek due to the Technological progress of the mobile phones and mobile communications; In chapter 3, the paper segments the company's customers and compares the current ones with future ones. The paper also talks about local manufacturers'business development in international market and compares different manufacturers'switch cost as well; In chapter 4, the paper mainly analyzes the situation of current and future competitors of MediaTek according to different product lines; In chapter 5, the paper analyzes the service cost and production capability of three IC manufacturers (foundry) which maybe be chosen as providers of MediaTek; In chapter 6, the paper analyzes the risk of MediaTek's original business model; In chapter 7, the paper analyzes the advantages and disadvantages of MediaTek's original time-to-marketing strategy; In chapter 8, the paper makes the conclusion, suggests and designs MediaTek's future business model based on new market and competitive environment.By analyzing theory and practice of"product life cycle", the handset chipset market environment, MediaTek's competitors in different handset product sub-lines, foundries and customers, the MediaTek's new business model is designed, the suggestions and improving methods in competitive strategy design, customer selection and control, foundry selection, future"product life cycle"practice and so on are given. We also hope that not only MediaTek but also other companies will be benefited from these suggestions and methods.