The Critical Success Factors of Strategy Innovation In Merger and Acquisition Case of ASE Inc.
朱 博 湧
Dr. Po-Young Chu
|關鍵字:||垂直分工;購併;範疇經濟;規模經濟;半導體;封裝測試;核心能力組合管理;價值鏈;Vertical dis-integration;Merger and acquisition;SCOPE economics;SCALE economics;Semiconductor;Assembly/testing;Competency Portfolio Management;Value chain|
Merger and acquisition (M/A) has become essential elements of corporate strategy. Studies on cases of leading corporations in the globe revealed that M/A strategy itself and the integration are not an easy task at all. Vertical dis-integration – The new business model of semiconductor industry evolved in late 20th century exhilarated M/A as one of key strategies to grow the business in the targeted segment of value chain. In middle 1999, ASE acquired each one factory of Motorola Inc. in Taiwan and Korea. The case inherently possesses innovation as well as uncertainty. This thesis intends to review the critical success factors of innovation strategy adapted by ASE and the implication of strategic intents inspired in this case. To achieve the objective of continuous growth, there were options such as acquiring patented technologies, forming joint venture, mutually investing or expanding current factories. ASE chose to execute an M/A strategy for the objectives of SCOPE economics innovation and SCALE economics. ASE was the independent service provider who is the largest in IC testing and the second largest in IC assembly field in the global market with the majority of end customers in PC and peripherals industry. Communication and Automotive market were new to ASE. The strategic objective of acquiring Motorola factories was to quickly expand the product portfolio and the scope of end customers, which contributed economic scale in newly developed business field. The post acquisition integration strategy of ASE focused on acquiring critical technologies, strengthening core competency and vertically integrating up-stream and down-stream processes and services in order to upgrade value proposition of ASE in value chain. It also elevated entry barrier in the industry and consequently reinforced the competitive advantages of ASE. In summary, “Competency Portfolio Management”, “Aggressive but Flexible marketing Strategy”, “ Pursuing Scope economics as well as Scale economics” and “Adaptive Human Resources strategy” were identified as vital few critical success factors of innovated strategy applied in the merger and acquisition case of ASE. Merger and acquisition bears uncertainty and risk. The success is not automatically guaranteed. However, benchmarking the best practices should enhance the chances of success and help avoiding catastrophic pitfalls. The implication of strategic intent distilled from the ASE’s M/A case may shed light to enterprises who pursue in the similar scenario.