Using Theory Lenses, Can You Explain Why Mediatek Has Been So Successful?

Disruptive Innovation                                                                                             Prof. Toby Canto

Learning Team 3                                                                                                                      July 28, 2017

Rey EDWARD Solicito                                                                                                            MIB 2017

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Shanzhai! MediaTek and the “White Box” Handset Market:

MediaTek’s Success

MediaTek’s Disruption

        Using theory lenses, can you explain why MediaTek has been so successful?

MediaTek’s operation in the fast-growing mobile handset industry is a story of great strategic decisions and remarkable target marketing. MediaTek has been able to identify what consumers want and directly addressed it in the best way they can. In their case, they are able to say that some mobile handset manufacturers do not need the latest and more expensive chipset, and that what they need is a chipset that is easily modifiable to be able to add differentiation and trim down the development cycle of their products. What they provide are chipsets that are sufficient and cheap, and is easily customizable.

MediaTek has been so successful throughout the years because they have a business model that supports their consumer’s own drive for profitability, innovation and success.  

The Kind of Innovation

        Choosing between sustaining innovation and disruptive innovation, it is more likely that MediaTek’s business model is a sustaining one. This is, of course, in the perspective of MediaTek. Their strategy is to be a cost leader by creating cheaper technologies that can perform at par, or sometimes even better, that those in the market. This gives them the ability to price their products at the lower end of the current market price.