Marketing and Management Issues
1. BenQ’s strategy of focusing on fast-growing product lines (flat-panel screens and cell phones) has brought it into direct competition with some of the world’s largest consumer electronics companies including Samsung and Sony.
2. With BenQ’s plan to boost its OBM business, its brand management-lineup appears to be modest. BenQ’s top brand executive comes from Acer and its advertising agency is still Leo Burnett, Acer’s agency, which has produced limited results for Acer over the years.
3. BenQ is paying its brand-building bill through original design manufacturing (ODM). By supporting its OBM business with its ODM sales, BenQ may be viewed by its customers as a competitor. Another issue is conflict of interests due to client’s concern that proprietary information on their product designs may be used by BenQ in its brands.
4. BenQ competes in products with short life cycles and prices that drop rapidly within weeks of product introduction.
5. BenQ’s first notebook computer, Joybook, is part of its plan of connecting its many peripherals products. But this move into the notebook computer will mean that BenQ is competing head on with parent Acer.
6. No information was given for BenQ’s plan for product management to support its plan of strengthening its OBM business.
7. Because of BenQ’s aggressiveness in creating new products, they may produce new major brands that may not add value to the company.
8. BenQ, owning 15% shares of AU Optronics, is exposed to losses due to worries about the LCD markets.
9. Acer is about to compete with BenQ after it announced its re-entry into the LCD projector market. BenQ is also in competition with Acer after launching its Joybook notebook computer in 2003.