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MEMBERS

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Agenda

INTRODUCTION

SITUATIONS

QUESTION AND ANSWER

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INTRODUCTION BenQ was originally spun off from Acer in 2001 to provide a

separate branded channel.

BenQ sells and markets technology products, includingconsumer electronics, computing and communicationproducts. Its principal products include LCD monitors andTelevision Digital projectors, digital Cameras and mobilecomputing devices.

October 2005, it acquired the loss-making mobile devicesdivision of Siemens. With the acquisition, BenQ plannedto sell co-branded mobile phones (BenQ-Siemens) inaddition to the BenQ and Siemens brands.

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IntroductionBenQ In November 2006, BenQ Corp. (BenQ)

announced that it would cut 400 jobs at itsShanghai, China plant. This unit hadbelonged to the mobile devices division of

Siemens AG (Siemens), a major Germanengineering and electronics company, upuntil October 2005, when it, along with plantsin Germany, Brazil, etc., and R&D labs inGermany, Denmark, and China were sold toBenQ.

After acquiring the division, BenQ renamed itBenQ Mobile GmbH (BenQ Mobile). BenQMobile had, in September 2006, filed forbankruptcy protection after a year of heavylosses. BenQ was a prominent Taiwaneseelectronics and computer peripheralsmanufacturer. As of 2005, it was also the sixth

largest manufacturer of mobile phones in theworld.

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CONTINUE In 1847, Werner von Siemens

established the Siemens & HalskeTelegraph ConstructionCompany in Berlin. The company

laid several long distancetelegraph lines in Europe.

In the 1920s and 1930s, thecompany developed severalproducts including radios,

automatic traffic lights, multi-purpose electric locomotives, andtelevision sets

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RESULT OF THE DEAL Mobile phones become one ofBenQs core businesses.

And BendQ can access to Siemens customer in EU,Latin America.

BendQ aspire to become o major player in the mobilephone market.

Siemens unit slipped to No.5 in 2005 with share (5.5%)

compare to 9 % ( No.4) in 2002 in global handset sales.

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continue BenQs Q1 profits tumble

by 90 % ($9.1 million) asits revenues fell 23% ($1billion)

The Siemen and BenQscombined market sharedropped from 13.5%(2004) to 9.8$ (2005)

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Question 1 How do you evaluate BenQs Acquisition deal of the

Siemen handset unit? Is it indeed too good to betrue?. What are the pros and cons?

Answer:

The deal totally failed ( revenue down, profit down,lost capital)

To obtain an entire business and its known brand(Siemen) for free was too good to be true for BenQ (enhance Brand visibility).

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Question 2 Where is BenQ vulnerable?

Answer:

Corporate culture conflict and communication issues ,

team difficult to integrate (Most of the BenQs expatriateswere not fluent in German, the local language)

Does not have sufficient funds, it is difficult to resist thehuge losses

A small number of people responsible for the integrationprocess in the limited time deals with two companies

The combination of the sub-brand is difficult to becomethe best choice for consumers

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Question 3What strategic marketing recommendation would you

make to BenQs going forward?

Answer: Forward toward the developing and emerging

countries

Create a flagship product

Improve product quality Personnel training to develop

R & D and apply for more patents

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The end