Traditionally known as an offshore manufacturing center for worldwide brands like Hewlett-Packard, Motorola and Apple, Taiwan has built a reputation for being a high-tech powerhouse for others, and now it might be poised to take that notion a step further. As a business model, the limitations of contract production are numerous – not having the ability to set prices leads to lower profit margins and any innovations remain in the hands of the parent company chief among them – but at the same time, it assumes far less risk. Still, faced with the prospect of alienating their corporate clients or toiling in obscurity, many Taiwanese companies are choosing the latter path.
Time reports on two such companies, “Asustek Computer, which practically invented a category of small, inexpensive notebook computers called netbooks, and HTC, which is making a surprisingly strong showing in smart phones.” Their beginnings are much like the start-up world’s equivalent of training wheels on a bike, being able to establish their company’s infrastructure and culture within the relative security of the corporate shadow, until they were adequately prepared to go off on their own. But if it’s so easy, why don’t we see this situation happen all the time?
Despite the safety net, these companies can’t simply emerge one day without a plan and more importantly, a big idea already already in place, and more waiting in the wings. And even this is no guarantee. Competing over the long haul with heavyweights like Apple and Microsoft requires not only something truly special, but flexibility and adaptability as well. A little help never hurts either.
To that end, Stan Shih, founder of Acer, a computer maker that “ranks behind only industry giant Hewlett-Packard in the global notebook-PC market, with a 19% share, and is poised to overtake Dell as the second largest computer seller in the world,” has created a consulting firm to help the companies like Asustek and HTC succeed. Called iD SoftCapital Group, the firm has already raised $30 million in capital to back the branding efforts of what Taiwan hopes will be the next big thing.