Organizational Learning and Strategic Flexibility in Modular/Open Product Business : A Case Study of Acer

From the release of IBM PC/AT in 1981, the value-added distribution pattern in value chain was going to be the smile-curve as the development of Modular/Open Product Architecture in the electronics industry. Electronics makers are making the choice and focus strategic behavior with exploiting external resources like ODM/EMS model to correspond to smile-curve. However, we find that the homogeneous competition will be hastened by concretizing core competence from the choice and focus strategic behavior. As a result of many researches, It has been regarded the viewpoint of evolving core competence as very important to solve that problem. In this paper, we investigate the evolution process of core competence regarding combine organizational learning and strategic flexibility perspectives. Then we take up the case study of Acer to explain the assignment. The results of my analyses show two implications. Firstly, it can be seen the division between the learning of transferring market information to product concept in the brand maker and the learning of transferring product concept to prototype in the ODM maker made known as the brand maker is developing 'Strategy of choice and focus to high value-added area'. Secondly, the product managers of brand makers regard own product system as a important role, as an open platform blending the external and internal resources, for promoting and linking the two learning patterns. And the strategic flexibility of brand makers will be increased from this linkage of organizational learning. This is the characteristic of evolving core competence to match 'Strategy of choice and focus to high value-added area'.