I think MUEI's problem is that it did not implement the OTB program and ended up with higher inventory of components and as a result higher cost of revenue and less profit. Secondly, you can see that
MUEI's revenue is about 10% of CPQ and that units shipped is only 30%
more comparing to the same quarter of one year ago which is only 3%
of CPQ's additional market share ( if we assume CPQ shipped 30% more
units too) and which can not generate enough additional profit to
compensate the expense of big inventory of compents. Besides, it did not have a name brand for its notebooks. People always like to buy notebook with big name brand, like CPQ. Just like buying cars, if you
have 70k on a car, you want to buy from a company with brand, like Benze. Besides, MUEI may depend too much on PCs and do not have enough
diversification of product lines like CPQ. MUEI is a sinking boat, and
we may not see MUEI in the next two to three years. Just like the AUTO
industry, only the most efficient ones can survive. We may end up with the big three or four in five years, just like the AUTO industries. |
