Abstract

With the advancement of the technology industry, life cycles of electronic products have been shortened rapidly. It is especially true with consumer products. As product technologies and specs have been innovated continuously, enterprises, no matter the scale, sooner or later would have to face an initial stage, a growing stage, a stable stage, and probably a decline stage eventually. No matter in the aspect of change in environment or technology, if an enterprise can response to the market change in advance, it is likely that the enterprise can find another chance for growth. And efficiently evaluate development strategies and expanding business portfolios can help a company to break its current bottleneck. In the aspects of overall operations and executions of enterprises, there can be a lot of uncertainty and changes in product development strategies. Enterprises try to suggest directions for new product development based on product portfolio strategies. Managers keep on adjusting their strategies according to changes in external environments, so that their expansion of product portfolios can be more complete, sustainable, and innovative. This way, when their enterprises evaluate product portfolios, the change to meet market demands would be higher. In the meantime, companies’ resources can be used more efficiently and their core competence can be well applied. This study explored the relationship of interactive development between product portfolios and core competence and proved an enterprise’s strategy formation approach is either the design approach or the emergency approach from the empirical perspective. Also, through the dynamic relationship between product portfolios and core competence, this study found that the strategy formation approach of companies with core rigidity is usually the design approach, while that of others is the emergency approach.

Full Text
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