Founded in 1984, BenQ registered intial sales of more than NTD 300 million generated from it''s core business being the produciton of computer components. By 2004, BenQ''s sales income reached NTD 174.7 billion with several mergers. Over this period, in line with BenQ''s growth as a global enterprise servicing more than 30 countries, employee numbers increased to more than 13,000 whilst sales income increased more than 580%. At this point, BenQ''s success served as a model for taiwaness IT companies intent on entering intrernational business.
The research presented in this paper looks at the strategies used by BenQ in terms of their entry into international markets, purchasing and marketing with particular reference to their presence in the European market. Analysis of case studies, focus interviews, BenQ annual reports and publications, and customer generated forums were used to investigate the failed merger between BenQ and Siemens Mobile Phone Division.
Internationalization of business comes along with high risks and returns. This study identified several reasons contributing to the failed merger between BenQ and Siemens Mobile Phone Division as follows:
1. The delay of new product launches, combined with the depreciation of goods/material in stock, meant that BenQ Mobile operating costs remained high.
2. These factors contributed to the cancellation of orders from key vendors such as Vodafone and T-Mobile. Consequently, BenQ failed to expand their market share and make the best use of channel resources provided by Siemens.
3. Expenses on Research and Development and sponship for the Real Madrid football club siphoned vital marketing revenue without significant return.
4. 4P strategy was both incorrect and outdated and failed to meet customers actual needs and desires.
5. Participation in interntional trade shows and the iF Design comptetion did not benefit BenQ''s sales and revenue.