Brands & Branding and Private Labels Case Study

BenQ: In Quest Of Global Branding

OR

Abstract:
Although contract manufacturing of non-branded products accounted for 63% of the revenues in 2004, BenQ Corporation (BenQ), a leading Original Design Manufacturer (ODM) of Taiwan, decided to implement a two-pronged strategy of contract manufacturing, as well as developing its own brands to ensure stable revenue generation. BenQ planned to increase its revenues from the branded business from 37% in 2004 to about 50% by 2007 in order to become a sustainable global brand and increase its profitability.

The case highlights the paradigmatic shift in the business strategy of BenQ, in its efforts to become a leading electronic goods manufacturer in the world.

Pedagogical Objectives:

• To discuss the brand-building initiatives of BenQ
• To understand the business transformation of BenQ from an unbranded business to branded one
• To understand the competitive forces in branded electronic goods manufacturing industry
• To critically analyse the business model of BenQ and its sustainability in the long-run
• To understand the dynamics of the Original Design Manufacturing (ODM) business.

Keywords : Lifestyle design centre, Two legged strategy, BenQ as ODM (original design manufacturer), KY Lee, Two dagger approach, Brands & Branding Case Study, Acquisition of Siemens AG’s handset business, BenQ’s brand equity, DEEP (Design Efficiency Experience and Preference)