Case | HBS Case Collection | November 2005

Inventec Corporation

by Krishna G. Palepu and Ingrid Vargas

Abstract

Inventec Corp., with $4.5 billion in annual revenues, was one of Taiwan's leading original design manufacturers (ODMs). Inventec designed and manufactured electronic products such as computers, servers, MP3 players, PDAs, and cellular telephones for client companies that marketed the products globally. Inventec moved production to mainland China to lower costs in this highly competitive, low-margin business. But with its competitors also setting up shop in China, Inventec had to find another way to remain profitable. Could Inventec break its dependence on powerful clients by branding and marketing its products in China and other Asian markets? Was there a way for Inventec to separate and market the software that it designed for use with its hardware products.

Keywords: Multinational Firms and Management; Competitive Strategy; Emerging Markets; Manufacturing Industry; Electronics Industry; China; India;

Citation:

Palepu, Krishna G., and Ingrid Vargas. "Inventec Corporation." Harvard Business School Case 106-016, November 2005.