From The Blog

Connector suppliers on the global market

Author:danny / time:2019-02-19 / The number of clicks:540

The vast market potential for connector suppliers remains competitive with western countries (i.e. European countries and the U.S.), Japan, and Taiwan as the three major market forces that are able to expand their market share through their respective competencies.

Manufacturers from European countries and the U.S. have abundant capital, which gives them the advantage to strategically control the connector market and invest in effective innovation for their research and development segment. Some of these manufacturers may even take over smaller businesses to dominate the connector market through transactions such as mergers and acquisitions. However, due to the financial crisis, the price of electronic products has remained low, forcing these companies to change their business strategies and cut down price for better sales.

Japanese manufacturers may not be able to compete with western manufacturers in terms of capital, but they are equipped with the latest technologies in the connector industry. Connector manufacturers enhance their market competitiveness by reducing the volume, height, and width of connectors as well as optimizing the multiple functions of their products. However, Japanese manufacturers were affected by the financial crisis and were unable to sustain innovation and technologies, forcing them to divert their attention and focus on the production of affordable and low-end products.

Taiwanese connector suppliers are good at integrating upstream and downstream companies so as to shorten the time for research and development as well as production, focusing on end products. They concentrated on marketing medium and low-end connectors so as to avoid competing with manufacturers of premium products from European countries and the U.S. With the country’s geographical advantage, Taiwanese manufacturers have put a lot of effort into expanding their business and establishing plants in China, which have helped lower the cost of overseas production. The impact of the global financial crisis and rival goods from connector manufacturers in European countries and the U.S. has caused a 12% decline in gross income in the first quarter of 2009 compared with that of the same period in 2008. However, Taiwanese connector manufacturers can still improve their techniques and regain market share. Generally speaking, Taiwanese connector manufacturers can keep an advantageous position and sustain their revenue after the global financial crisis given their corporate competitiveness.