Lee: My perception of the failure of BenQ to acquire Siemens ' handsets

Lee: September 10, 1952 born, Taiwan Province Miaoli County person. He has a bachelor degree in electrical engineering from Taiwan University and a Master of Business Management Institute of IMD Management College, Switzerland.　　1976 joined Acer computer, experienced product development, manufacturing, marketing strategy planning and other work, and promoted to Acer Computer deputy general Manager, 1991 Zimminki general Manager, May 24, 2002, as Chairman of the company.　　A year ago that winter, unusually cold. BenQ officially withdrew from the Siemens brand at the end of 2006.　　It was a difficult decision and the biggest setback since BenQ's inception. We will never let go of the end of our tether. At that time, in BenQ, almost every day can be reported to the urgent military intelligence, internal dissatisfaction soared. There are conference calls every day, and they want to control the losses. They don't like the way German companies do it, they lose so much money. Anger spreads within the enterprise. The board, too, has become increasingly impatient, and by September 2006 the Board had been able to fund 400 million of dollars in private equity. But to fill the benq-siemens black hole, we expect to need € 800 million.　　Again, BenQ will be in danger of being doomed to a loss.　　It is the only choice for BenQ to survive a broken tail. But giving up is of great significance to BenQ. More than 10 years ago, BenQ against the objections, determined to take the road of the brand, but now to say that they are wrong. Through the mountains and seas, but back to the old place.　　That is definitely a life of absurdity. It was the darkest day of my life. All the Glory and dreams in exchange for the big stakes in life begin to dim. The ability of the BenQ team, which has been built up throughout his career, has been widely admired from the past and is now being questioned.　　But it is a responsible attitude to face the dilemma. The withdrawal from Siemens has been more than 1 years.　　The past in the Bureau, often not see clearly, as I am now as a spectator of the past, but more rational.　　BenQ's takeover of Siemens, for the most primitive purposes, is a strategic breakthrough, and in a sense, BenQ is also in the way. It is BenQ's dream to become a worldwide brand like Samsung and Sony.　　BenQ in the global market to do about 3.5, in the marketing has produced a lot of benefits, but still can not reach the world-class height, which makes us very confused. Later, we finally understand that Samsung is not replicable. The success of Samsung, outsiders see only the results, and in fact from its investment in semiconductors, the Korean government and society to give it the full support. Because of the government's shield, Samsung developed real estate, operating stores, hotels, cinemas, museums, and so on, almost discriminating.　　It is in these areas that investment has provided Samsung with a huge cash flow that allows it to invest freely in capital and technology-intensive and value-added brand building. BenQ had to look for shortcuts. Adopt a strategy of exchanging money for time. and Siemens's position in the European market is exactly what we need, the core source of mergers and acquisitions is this. Looking back on the process of benq mergers and acquisitions, there are several points to share with Taiwanese enterprises and Chinese enterprises all over the world: 1. Asia's consumer and growth brands are more difficult to acquire than the imagination of an old brand that integrates a European "car culture" style. One is fast, flexible, opportunity type, one is stable, normative, perfect type, both sides of the enterprise system and social system is too far. 2. To buy a loss-making enterprise, the prior funds must be sufficient, three times times four times times may not be enough. 3. If the purchase is part of a large company, before entering must require the other party and the parent company to completely cut, independent operation for a period of time, must not be advanced to cut;　　4. Between personal convictions and corporate risk, decisions must be made decisively, even if personal reputations are compromised. The failure of BenQ's takeover was partly a congenital defect and half a strategic blunder.　　The chances of its failure are inherently large, perhaps the same as the one that BenQ must go through, like Tcl in mainland China. This setback seems to be a replica of Acer's past. 1989 Acer merged Los Angeles SI Company, paid only 500,000 dollars price, the result has become "Acer history of the most serious mistake." Acer lost 20 million dollars, 40 times times its original investment, when it had to close the company to end the acquisition.　　After such a painful lesson, Acer has created a huge pan-Acer system today by recreating it. For me personally, the setbacks in life is more common. When BenQ started in 1991, we were Concubine's son and experienced all kinds of difficult setbacks.　　We later invested in LCD, and in the early days we had a major dilemma, and in the end, BenQ, which withstood the challenge, was stronger. BenQ climbed a high mountain in order to become a world brand. We thought we were strong, so we began to take a short cut from the rough path, but we found the shortcut connected to the cliff, the risk is too high, and continue to move will not be able to physically, at this time we can only go back to the original road.　　But we are not going down the mountain, but looking for another way to continue climbing. At present, BenQ has made a major strategic adjustment, the European market will continue to develop in accordance with the original pace, in the projector area is already No.1, liquid crystal display has done the first few, mobile phone field will expand to European operators customization. Growth in China and Asia-Pacific will be key in the next few years. As for the United States, because of the high cost, it will become the 2nd echelon of the market.　　At the same time, BenQ has also separated the brand from the foundry, in the next few years, adhere to the two-legged walk, and so gradually recover vitality, will seek to rise again. The setback for the acquisition of Siemens mobile phones is a fortune for BenQ: Not only does it see the weaknesses of its own capabilities, but also the weakness of some European and American companies, as well as deepening ties with the European market and establishing good relations with international giants.