IMM_Case1_BenQ - CAS E: B ENQS DEAL OF THE C EN TUR Y? K...

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CASE: BENQ’S DEAL OF THE CENTURY? KIM, JUNG EUN (RA6997422) . Case summary 2001 BenQ, electronic ODM company, spun off from Acer 2005.07.06 BenQ acquire the handset division of Siemens AG, the world‟s fourth largest cell-phone maker 1. Pros: Get the whole mobile handset business and a decent brand „Siemens‟ for free 1. A renowned brand name (the period count from 2005.10.01.) - Right to the Siemens trademark for 18 month - Co-branding rights for 5 years BenQ has little brand name recognition in the European and U.S. markets. Siemens brand equity will give BenQ a major push in its stride to gain credibility. 2. New technology - Inherit factories in Brazil and Germany and research facilities - Access to Siemens‟ intellectual property including its GSM,GPRS and 3G patents GSM: Global Standard [System] for Mobile Communications GPRS: General Packet Radio Service 3G: 3rd Generation Feedback on BenQ‟s products hasn‟t been great, and it‟s been late getting products to market. This deal might solve its problem cause Siemens has a very strong heritage in German technologies.
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3. Access to Siemens‟ customer base in Europe and Latin America Help BenQ gain access in new markets. * The handset division of Siemens AG 2002 Siemens grab no.4 and 9% market share in global handset sales 2004 Siemens lose $615 mil on sales of $5.8 bil 2005 Siemens unit slipped to no.5 with share just 5.5% * BenQ & Siemens combined market share The 4 th quarter of 2004 13.5% The 3 rd quarter of 2005 Drop to 9.8% 2. Cons: Risk that Siemens could wipe out BenQ profit in 2006
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IMM_Case1_BenQ - CAS E: B ENQS DEAL OF THE C EN TUR Y? K...

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