A study on the business strategy of highly profitable electronic component manufacturers

Chihiro Sato

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper aims to analyze the source of competitiveness of highly profitable electronic component manufacturers from perspective of product characteristics and patent information. In the electronic component industry, on the one hand there are some companies having a high ratio of operating profit on sales for a long period of time, but on the other hand there are many companies remaining low profitability. Therefore, the fact is that profitability ratios differ widely according to the company. Firstly, the case analysis of Keyence, a leading factory automation manufacturer, and Hirose Electric, a leading connector manufacturer is conducted from perspective of product characteristics and patent information. Secondly, the differences and similarities between these two companies are clarified. Thirdly, some factors delivering competitive advantage to these two companies have been analyzed by two distinctive strategic management approaches: Porter's five forces analysis and Barney's resource- based view. Finally, the implications drawn from these analyses are discussed, and the issues for future research are posted.

Original languageEnglish
Title of host publication6th International Conference on Industrial Engineering and Operations Management in Kuala Lumpur, IEOM 2016
PublisherIEOM Society
Pages447-454
Number of pages8
ISBN (Print)9780985549749
Publication statusPublished - 2016 Jan 1
Event6th International Conference on Industrial Engineering and Operations Management in Kuala Lumpur, IEOM 2016 - Kuala Lumpur, Malaysia
Duration: 2016 Mar 82016 Mar 10

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
Volume8-10 March 2016
ISSN (Electronic)2169-8767

Other

Other6th International Conference on Industrial Engineering and Operations Management in Kuala Lumpur, IEOM 2016
CountryMalaysia
CityKuala Lumpur
Period16/3/816/3/10

Keywords

  • Commoditization
  • Competitive advantage
  • Highly profitable company
  • Standardization
  • Strategic management

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

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