• Capturing Value Activity Restructuring Opportunities-Attackers’ Niche Entry Strategy

Abstract

This study starts off by analyzing the case of MediaTek, a leading Taiwanese semiconductor manufacturer, to understand how it expanded into the Chinese mobile phone chipset market. By extending complementary asset of Teece’s PFI framework, the study then explores into how technologically back-warded, capital-stressed market attackers adopt innovative operating models to effectively compete with leading international innovators in specific markets.

According to the findings of this study, in order to develop a successful niche entry strategy to out-compete leading international innovators in specific markets, attackers of developing countries must partner with emerging forces of the industry to identify market spaces where channel brands have shown great potential for growth but have so far been neglected. In addition, these attackers must collaborate with channel brand players, leverage the industrial value chain, and re-structure their own capability mix to create distinctive edges with brand new value-adding activities, and then develop customer competitive advantages through product diversification, rapid market response, and low-cost operations, to finally break into the mainstream market.

Keywords: Complementary Asset, Value-Adding Activity Restructuring, Attacker, Niche, Entry Strategy