26 October 2008

Taiwan Computer Industry Challenging Silicon Valley

OK. Don't get too excited yet. I don't think Taiwan is going to take over from silicon valley anytime soon but they are certainly starting to make strong challenges in certain technology sectors. Mercury News writes:

TAIPEI, Taiwan — First came the slim fashion models, hugging the slim new laptops.

Then a tuxedo-clad Jerry Shen, chief executive of Asus, stepped onto the stage earlier this month to introduce his company's new S101 mini-laptop to a horde of reporters. He stood in front of a sign that likened the new product, which is now going on sale in the United States, to "fashion on the go."

And just Wednesday, another low-profile Taiwanese tech company took center stage: Little-known HTC introduced the much-hyped first cell phone based on Google software.

These moves signal a dramatic shift in the island's high-tech focus as it seeks to step out of its behind-the-scenes role as a manufacturer and into the spotlight as a direct challenger to Silicon Valley's dominance in the consumer product market.

It wasn't long ago that the closest a Taiwan technology company came to buzz-making was through assembling products for the likes of Apple and Hewlett-Packard.

"A company going bankrupt in Silicon Valley had a better image than a successful company in Taiwan,'' said Stan Shih, founder of Acer who now heads iD SoftCapital, an investment management and consulting company. "Brand Taiwan" includes computer makers Asus and Acer, the world's No. 3 PC vendor, as well as HTC, a manufacturer of mobile phones. They are among a host of Taiwanese tech companies — along with Chinese computer maker Lenovo — trying to move out of the shadows of Western super brands.

It is funny that a bankrupt company would have a better reputation than a successful Taiwanese company. However, as the article states, Taiwanese companies are starting to stand on their own two feet and starting to grow in market around the world. Tech companies in the US and elsewhere need to be especially cautious. If Taiwanese companies actually manage to get their branding right they will be very tough competitors. However, it is a big if.

I recently spoke with the marketing manager of a big computer company in Taiwan. The manager has a masters degree from an overseas university and is fluent in English. When I asked how the company manages the brand portfolio she didn't understand what I meant by brand portfolio. When I asked how they brand products I was told they thought of creative names. Unlike Acer, Asus, VIA and a few others, most tech companies fail to see the importance of employing professional brand managers. It is all lumped under the product manager who inevitably focuses on a number of products from different product lines.

From my experience many companies in Taiwan view brand managers as unnecessary luxuries. They would rather do the best they can with what they have got. It is sad really as many of these companies could be great if they could brand their products properly. I am sure in time they will learn but for now they will have to continue up the learning curve.

Mercury News: Taiwan PC makers ready to challenge Silicon Valley in the tech marketplace

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