What happens when a manufacturer design (ODM) company is trying to become a branded seller of goods? The case traces the evolution of ASUSTeK motherboard provider, ODM manufacturers of desktop and notebook PCs, through its division into three companies, which are separately branded business conduct, ODM, and contract manufacturing. Chairman Jonney Shih must not only meet the challenges of the brand, but it also needs to build new organizational capabilities ASUSTeK, while Pegatron is trying to succeed in business from past clients ASUSTeK, and now competitors. The case provides an opportunity to apply the lens of disruptive innovation to discuss outsourcing, considering the implications for companies like HP and Dell, which have outsourced much of their product design computer ODM companies as ASUSTeK, only to watch them morph competitors. Students can also study how the organizational resources, processes and values can create or limit its ability to move into new areas. "Hide
by Willy Shih Source: video add 31 minutes. Publication date: April 26, 2010. Prod. #: 610712-VID-ENG
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