TSP (Technology Service Provider)
Wistron Group has actively initiated a diversified layout through the division of work among the parent company and its subsidiaries. It further increases value of chain information and communication electronics (see Wistron Group presentation unit). Group members provide a variety of products and services in the areas of information and communications, spare parts, cloud solutions, and software industry.
Furthermore, the current PC industry has undergone a fundamental change. Wistron Corporation will turn from the pursuit of volume production in the past to the development of core competitiveness and increase marginal utility. Our diversification strategy in the past was to minimize risk. In the future we will implement the new corporate positioning of "technical services".
In simply terms "technical service" is to flatten out Mr. Stan Shih smile curve into a saucepan. At the bottom of the "Smile Curve" there are low margin products by OEM's or assembly lines. At the moment, ODM foundries are all crowded into a pool with intense competition amongst them. On the left side of the "Smile Curve" there exists software and hardware vertical integration of key components. On the right side there are the channels, after sales service, system application services and recovery/recycle. In the value chain, both left and right side can contribute higher margins. In this regard we have, since 2011, begun to actively invest and layout. The target is to increase the proportion of revenue from "technical services" year by year.
Short term development plan
Through the enhancement of customer satisfaction and the pursuit of quality, we strive to maintain existing customer goodwill and expand its share of OEM business. The short-term goal is to achieve high capacity utilization with reasonable profitability.
Long range development plan
In the longer term, we will continue to expand the proportion of high margin products (including smart phones, servers, network storage, internet telephony, industrial applications, handheld mobile products and Rugged Mobile Computer ... etc.) We also will strengthen future growth engine – move gradually from the design and manufacture of OEM (ODM) and transform into a technical service provider (TSP).
Wistron will utilize its position as a leading provider in ICT product design, manufacturing, and after-sales support as basis for long-term vision of the development of technical services. We will provide cutting-edge information and communications products, services and systems. In addition to continuing to provide high quality and diversity of products, we will also continue to focus on providing innovative technical services, so that our customers will be completely satisfied with the value provided by Wistron and the employees. We believe that this strategy will best serve our shareholders’ interest over the long term.
Wistron Group has actively initiated a diversified layout through the division of work among the parent company and its subsidiaries. It further increases value of chain information and communication electronics (see Wistron Group presentation unit). Group members provide a variety of products and services in the areas of information and communications, spare parts, cloud solutions, and software industry.
Furthermore, the current PC industry has undergone a fundamental change. Wistron Corporation will turn from the pursuit of volume production in the past to the development of core competitiveness and increase marginal utility. Our diversification strategy in the past was to minimize risk. In the future we will implement the new corporate positioning of "technical services".
In simply terms "technical service" is to flatten out Mr. Stan Shih smile curve into a saucepan. At the bottom of the "Smile Curve" there are low margin products by OEM's or assembly lines. At the moment, ODM foundries are all crowded into a pool with intense competition amongst them. On the left side of the "Smile Curve" there exists software and hardware vertical integration of key components. On the right side there are the channels, after sales service, system application services and recovery/recycle. In the value chain, both left and right side can contribute higher margins. In this regard we have, since 2011, begun to actively invest and layout. The target is to increase the proportion of revenue from "technical services" year by year.
Short term development plan
Through the enhancement of customer satisfaction and the pursuit of quality, we strive to maintain existing customer goodwill and expand its share of OEM business. The short-term goal is to achieve high capacity utilization with reasonable profitability.
Long range development plan
In the longer term, we will continue to expand the proportion of high margin products (including smart phones, servers, network storage, internet telephony, industrial applications, handheld mobile products and Rugged Mobile Computer ... etc.) We also will strengthen future growth engine – move gradually from the design and manufacture of OEM (ODM) and transform into a technical service provider (TSP).
Wistron will utilize its position as a leading provider in ICT product design, manufacturing, and after-sales support as basis for long-term vision of the development of technical services. We will provide cutting-edge information and communications products, services and systems. In addition to continuing to provide high quality and diversity of products, we will also continue to focus on providing innovative technical services, so that our customers will be completely satisfied with the value provided by Wistron and the employees. We believe that this strategy will best serve our shareholders’ interest over the long term.
