Case Study on Convergence Strategies of high-Technology Companies

Abstract

This paper predicts the convergence strategies of high-technology companies by analyzing current convergence strategies and business sector trends in network IT value chain. Digital convergence and diversification (e.g., Penrose, 1959; Ansoff, 1965; Markides, 1995; Fey, 2000; Montgomery, 1994) in this paper can be defined as the strategies that high-technology companies diversify their businesses to other related business sectors (e.g., Hill and Hoskisson, 1987) in network IT value chain. Network IT value chain is composed of 6 business sectors which are core component, hardware, software, network, content, and service. We analyze the 6 companies as cases of high-technology companies such as Intel, Sony, Nokia, Microsoft, SK Telecom, and Yahoo. This paper is composed of 5 chapters as follows: Chapter I shows the outline of the paper. This chapter specifies research background, objectives and scope. Chapter II analyzes current convergence strategies of 6 companies. Chapter III shows the prediction of business sector trends in network IT value chain. This chapter includes major streams of business sectors and their predicted strategic pathways. Based on the implications of the analysis of current convergence strategies and the prediction of business sector trends, chapter IV predicts the convergence strategies of 6 high-technology companies. Finally, we compare the current strategic positions with the future positions in the perspective of the degree of diversification.