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TEAM RAM MA1N0103 陳乃華 MA1N0206 Anja Išek MA1N0245 Michel Sung

TEAM RAM MA1N0103 陳乃華 MA1N0206 Anja Išek MA1N0245 Michel Sung. AGENDA. AGENDA. BenQ was a prominent Taiwanese electronics and computer peripherals manufacturer. As of 2005 , it was also the sixth largest manufacturer of mobile phones in the world.

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TEAM RAM MA1N0103 陳乃華 MA1N0206 Anja Išek MA1N0245 Michel Sung

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  1. TEAM RAM MA1N0103陳乃華 MA1N0206 Anja Išek MA1N0245Michel Sung

  2. AGENDA

  3. AGENDA

  4. BenQ was a prominent Taiwanese electronics and computer peripherals manufacturer. • As of 2005, it was also the sixth largest manufacturer of mobile phones in the world. • Acted as an OEM(Original Equipment Manufacturer) for global brands like Nokia, Motorola, etc., it also sold mobile phones under the BenQbrand. • The company had big plans to expand its operations and build its brand all over the world.

  5. Siemens started manufacturing mobile phones in the late 1990s. • Despite producing high quality phones, Siemens was unable to make a mark in the highly competitive industry, and the business began incurring huge losses. • In 2005, after yet another year of losses in the mobile phones business, Siemens decided to exit the business. • However, securing the future of its employees was high on its list of priorities. • Therefore, it looked to sell the division to a company that would assure the continuity of the division's operations in Germany...

  6. THE ACQUISITION • In April 2005, Siemens' mobile devices division reported US$ 179 million in losses for the first quarter of 2005. • In June 2005, BenQ acquired the mobile phone division of Siemens • BenQ Acquired manufacturing units in Germany, Brazil, and China. • October 1st : Benq- Siemens is one of the world's largest mobile handset makers

  7. POST ACQUISITION • BenQ failed to turn around the Siemens unit, which incurred losses of € 840 million within a year • The loss was attributed to BenQ'slack of management and marketing experience as well as to the tough German labor laws that prevented BenQ from laying off people. • Consequently in September 2006, BenQ Mobile filed for insolvency.

  8. POST ACQUISITION • In early 2006, BenQ Mobile undertook a series of cost-cutting measures

  9. POST ACQUISITION • The first BenQ Siemens brand mobile phones were unveiled in January 2006.

  10. POST ACQUISITION • In March 2006, the BenQ-Siemens P51, a smartphone, was launched. However, customer response to the new products was unwilling

  11. POST ACQUISITION • Cost cuttingresults to bad feelings among German stakeholders (unions,government) with the suspicion that BenQ only bought the Siemens mobile business for its patents.

  12. AGENDA

  13. QUESTIONS & ANSWERS • How do youevaluateBenQacuisition deal of the Siemens handset unit ? Is itindeed « too good to betrue » ? What are the pros and cos ?

  14. QUESTIONS & ANSWERS • WhereisBenQvulnerable ? • BenQ's acquisition of Siemens' mobile devices business was a rare case of a small entity acquiring a larger unit. • BenQ'sAugust 2005 sales were 21% lower when compared to the same period the previous year. • Ben Q was not financially strong enough to deal with the future • The fall in sales was mostly because of the loss of its biggest mobile phone customer - Motorola. • BenQ brand image was not established in US and Europe • BenQ'sattempts to expand its branded business seemed to have affected its OEM business, with several customers starting to see it as a potential competitor...

  15. QUESTIONS & ANSWERS • Whatstrategic marketing recommendationswouldyoumake to BenQ’sgoingforeward ? • Focus on StrategicCore Business Unit : ActivitiessuchOME and otherproductswhereBenQcan have competitiveadvantage and knowledge (LCD Displays TV screen) • Continue to developitsactivites to achieve a betterfinancial situation and seek for partnership as Joint-Venture to developitsown brand products to othermarkets • Developitsbrand image if BenQ plan to launchitsown brand products on othersactivities and markets.

  16. THANK YOU FOR YOUR ATTENTION

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