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International Brand Strategy of Taiwanese Hi-Tech Enterprises

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International Brand Strategy of Taiwanese Hi-Tech Enterprises International brand strategy of Taiwanese hi-tech enterprises Mezinárodní marketingové strategie tchajwanských hi-tech společností J. TSAI1, H.-Y. HUNG2 1National Taipei University, Taipei, Taiwan 2National Sun Yet-Sen University, Kaohsiung, Taiwan Abstract: This paper compares two Taiwanese high-tech enterprises, Acer and Trend Micro, which choose different inter- national brand marketing strategies due to the diverse managing types and product characteristics. The hardware products and business software sold by Acer and Trend Micro are discussed to reveal their international brand development and marketing strategy. The research findings can be provided for different enterprises for decision-making when they consider their internationalization and brand strategy. Key words: International brand marketing, hi-tech enterprise, Acer, Trend Micro Abstrakt: Tento příspěvek porovnává dvě tchajwanské hi-tech společnosti – Acer a Trend Micro. Tyto společnosti si v důsledku rozdílných manažerských přístupů a charakteristik svých produktů zvolily rozdílné mezinárodní marketingové strategie. V příspěvku jsou porovnávány jednotlivé hardwarové a softwarové produkty prodávané zmiňovanými společ- nostmi, tak aby bylo zřejmé, jaký typ mezinárodního rozvoje značky a marketingové strategie je používán. Výsledky tohoto výzkumu mohou být použity pro rozhodovací procesy různých společností, když tyto společnosti zvažují marketingové strategie a rozvoj značky. Klíčová slova: mezinárodní marketingové strategie značky, hi-tech společnosti, Acer, Trend Micro There is manufacturing competitiveness of Taiwa- concentrate their effort only in capacity because nese hi-tech industry during its developing stages of the homogeneity of their products. Therefore, of the OEM, ODM, and OBM. However, the leading these enterprises have to develop and manage their advantages are challenged by the mainland China own brand. The brand strategy can bring a value- companies so that Taiwanese hi-tech enterprises have added niche for these enterprises. They can transfer to consider whether to stay in the OEM field or to their manufacturing capacity to other countries or develop their own brand marketing strategies. Some manufacturing companies which have comparative enterprises choose to specialize in the OEM such as advantages. Taiwanese enterprises can accumulate Hong Hai Precision Industry Co. Ltd. (Foxconn) and their assets of brand, brand management, marketing Taiwan Semiconductor Manufacturing Company activities and knowledge from released the OEM Limited (TSMC). On the other hand, Acer and Trend activities and resources. Micro decide to develop their own brand strategies. The paper analyzes two Taiwanese hi-tech enter- No matter what developing strategies are decided, prises, Acer and Trend Micro, which are different in the same goal of these enterprises is to enhance their managing types, product characteristics and inter- competitiveness under the increasing pressure of the national brand marketing strategies. The hardware changing world environment. products and business software sold by the two en- Under the increasing competitive pressure of in- terprises are discussed to reveal their international ternationalization and globalization, Taiwanese hi- brand development and marketing strategy. The tech industry could not enjoy excess profits if they paper provides some investigation of managing types, AGRIC. ECON. – CZECH, 53, 2007 (2): 83–88 83 international brand developing strategy, and interna- Trend Micro concentrates its business on the sale tional marketing mix. The research findings can be of anti-virus software. Trend Micro has success- provided for different enterprises for decision-making fully drawn clients from numerous enterprises in when they consider their internationalization and Europe and the US markets while it does not need brand strategy. to rely on intricate distribution network system to draw personal consumption clients. Trend Micro’s consumption and enterprise clients in Japan and DISCUSSIONS OF THE DIFFERENCES Taiwan markets takes on one half respectively that it BETWEEN ACER AND TREND MICRO needs more distribution networks and client service organizations in Asian markets to serve personal Difference of internationalized models consumers. With Trend Micro’s products featuring disk software, large spaces are not in need for the For its internationalized model, Acer started to opt product exhibition, thus making the company to be for expanding its market in some areas that drew less free from competition with its peers for distribu- interest from some famous international enterprises, tion resources and exhibition spaces. Along with the such as South Africa, Malaysia, Middle East, India fact of its pioneering role in the anti-virus software and Russia, followed subsequently by its expansion industry, in particular its famous product PC-cil- in Europe by virtue of the successful multiple distri- lin, Trend Micro does not exactly need the intricate bution model which was later duplicated to China channel network constructed by the distributors to and the US markets. When expanding its business gain its fame, thus making software enjoy the advan- in China, Acer brought up the point that expansive tages in internationalization in comparison to that hinterland shall be the company’s support and backup of hardware industry. to develop its international brand. In the context of lacking the expansive local market to develop the future international markets for Taiwanese enter- Different operation models prises in their mother land, Taiwanese enterprises shall consider China markets as the first step to As Acer Inc. is concentrating its business on market- march toward internationalization. Differentiated ing and service instead of product manufacture, its from Acer’s internationalized model, Trend Micro sale method adopts the pattern of partnership with successfully established the marketing channels in distributors to carry out the OEM, assemblage and 30-more countries including Japan, South Korea, distribution, and integrated management of distribu- Europe, Mid East, and Central and South America tion through the order information system. For its upon the PC-cillin went on the market, among which pattern of partnership with its the OEM factories, its has the largest market share in Japan (Perllmutter Acer is responsible for product R&D prior to the 1969). manufacturing and assemblage by the OEM facto- The attributes of products would contribute to the ries. Trend Micro’s production and marketing are preceding different internationalized models. As Acer carried out in parallel. As the anti-virus software is concentrates its business on the sale of notebook an intangible asset, the most important part in the and household computer hardware, each process production process for Trend Micro’s products is the of channel, physical distribution, and upstream and innovation, R&D, and correcting of anti-virus. Product downstream supply chain management is critical. manufacture and marketing are equally important Notwithstanding this, Acer does not need to manu- for the company’s values. facture, assemble, or stock up, shops are indispens- There are three stages for industrial value chain able for its distributors to carry out the inventory of hi-tech hardware industry, i.e. product R&D, and product exhibit. If Acer opts for large markets followed by product manufacture and product mar- including the US market in the very inception of its keting. When discovering the meager gross profit internationalized stage, it would not be an easy step for in the manufacturing stage, Acer started to initiate the company to compete the local resources with other its upstream R&D, downstream marketing and ser- large enterprises. In the face of insufficient business vices of high value added. As there is no need for resources, secondary market will be the top choice or the hi-tech software industry to involve in the OEM the center of emphasis shall focus on the exploration manufacturing, hi-tech industrial value chain has into niche market prior to expanding its business to two stages, product R&D and marketing services. large markets upon the company has developed into As press and package are in the process of the physi- one with an adequate business scale. cal manufacture, it does not need much hardware 84 AGRIC. ECON. – CZECH, 53, 2007 (2): 83–88 equipment. In a word, it shows no remarked effects Difference of marketing strategy for hardware manufacture in information software industrial value chain. That is why Trend Micro Acer’s marketing strategy lays stress on the channel must have a good command of the whole software and service, while its multi-distribution model and value chain to work as the foundation to draw up customer services have help the company achieve No. 1 marketing strategy and marketing activity with the notebook sale in Europe. Acer’s to-door repair service excellent product technology. in Taiwan market has already built its public praise. For the Trend Micro’s marketing strategy, “product” was the center of emphasis for its business, but the Difference of brand positioning emphasis has turned into “service” since 2003. Trend Micro’s 24-hour and all-year round services practiced Acer is committed to fulfilling its mission of “Break- in the virus lab established in Manila of Philippines ing the barrier between people and technology” and serves as the greatest source for its service value. the core value of its products is easy operation, reli-
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