Building strategy on technological resources and commercial proactiveness: The Gemplus case

Abstract

This article uses the resource-based framework for analyzing the strategy of Gemplus, a spin-off of the French group Thomson, that has grown by 50 per cent each year since its creation in 1988. Three points are highlighted: (1) Gemplus combined various resources in order to build a distinctive competence base in three areas: smart cards design, mass production and mass customization, commercial capabilities. (2) The company's strategy is two-fold: a constant enlargement of the spectrum of applications of its core product (i.e. the smart card), supported by technology exploitation and commercial awareness, and an aggressive search for new geographical markets, supported by commercial proactiveness. (3) Gemplus continuously nurtures its resource base through a vast network of partners (with means such as R&D and joint-ventures). To summarize, we explain the success of Gemplus by a talented balance between an outside-in and an inside-out approach.