After a meeting to clarify the rumor about BenQ seems like to buy the SIMENS,
the big firm of cell phone product. The chairman of BenQ, KY Lee keeps his
promise to have an informal interview, he give me the rain ticket after the
speech in high school.
I don’t know where the best place to start the meeting is; he seems know my mind, and the next ten minutes he took me to the small vendor to have a “lunch”, it almost 2 o’clock pm, that’s our conversation during lunch.
Evan (me): When your secretary told me I can have a date with you, I thought someone wants to cheat me, but you really keep your promise, thanks anyway.
KY: I know the reports will ask me about the SIMENS this week, so I told myself: “How about solve these trouble at the same time, especial yours!” I still remember your question was so sharp, I am not sure I can or not answer your questions now.
Evan: Just like you have said in the
KY: That’s interesting. I accept your challenge.
The history of BenQ
Evan: Congratulation! BenQ is eleven years old; I remember your company was established in 1984, doesn’t it?
KY: First, I have to thank you, but you have to know, the brand of BenQ was building in 2001, before that, we are just a small company in under the Acer.
Evan: You began my question (laugh). Why do you want to leave Acer’s protection, a small company likes the little bird, leave maybe means the death.
KY: Sure, but do you think it’s time to be independent. I finish my study from IMD (International Institute for Management Development) in 1989, I came back to the Acer, and they face the problem, because the BenQ used the brand under the Acer. Two companies used the same brand, the quality became no coincident, and do you know what it means?
Evan: Division?
KY: Stan (chairman of Acer) knows the result. Like the Asus, when their operation system was adult, even can independent and change to be a company, stay in Acer like in jail not in home. Stan knows Acer need friends and family, not a competitor. So he created a new principle; “Do it if you can.” Any department or corporation firm, they can get assets and equipment before they be an absolute company. And BenQ is the best example which also able to be the competitor of Acer. I asked Stan to put me into the new company, and develop other product in the market.
Evan: Oh! For Stan, he got a new family, and you are his lifesaver.
KY: Ha, you can say that again. If I don’t chose the way to be the manager of BenQ, Acer will kill the youngster, I just pick the child and take care him, that’s all.
Evan: And the child become the giant in the electronic market, you should proud of him.
KY: Yes, I am really proud of him, but kids make trouble, giant have to face the challenger, especially the challenger is your family, Stan knows that.
The Competitor from Home
Acer born in the same source, it became the family and enemy.
Evan: When I read the magazine, JT Wang (manager of Acer) seems have much complain with you; what relationship do you keep between you and JT?
KY: JT thought Acer can be the best company, and there is two way can arrive the goal, one is BenQ give up his brand and join Acer, the other is split the relation, make everyone knows the difference between Acer and BenQ. So the relationship between JT and me, I think like the brothers, sometime we will angry for small thing, but we still is a family, Stan likes the father, he always stop our quarrel at the right time.
Evan: What is the right time?
KY: When we leave Acer, we keep the LCD monitor’s material, but JT thought we take all of the material and left him nothing. You said he complains me, I think the reason is that. He is unforgiving, its long time ago, should let it go.
Evan: It seems he didn’t do that. But for JT’s term, you shouldn’t take everything away; if you are really want keep brother’s relationship, it’s not so ethical.
KY: Use a different term. If someday you want to start a new life, get marry and leave home, the only rule is that you can’t go back to ask anything patronage. Can you do that?
Evan: It’s a difficult. If my family can lent me enough money, maybe I can do that.
KY: So am I. Every electronic company worked in the PC product, if I chose to join the produce line, the result would be BenQ lose at the beginning. Because Acer and ASUS monopoly the market, like the two giants keep the door to the PC market, if they know BenQ is competitor, I don’t think they will let BenQ in with smile.
Evan: Ha, that’s a good comparison.
KY: Talk about the question again, I know the LCD monitor will be popular and widespread the world. But Acer keeps their direction in computer and mother board, they will find the market will fill with competitor soon or later, so I chose the LCD product. LCD market has a lot of problem in the level of technology, so we star our research to solve the problems in 1989, our direction didn’t have any conflict, at least in 1989. We just take our technology and something Stan promise give to us, JT sometimes like the kid, he want everything all owns himself.
Evan: When 2001, JT found the market shorten, he want to toward produce the equipment for PC, and you have became the master in the level many years ago. You have foreseen the decrease of PC market, your decision must makes him angry, so he can’t forgot the embarrass scene, your relationship change from family to the competitor. Your quarrel make Stan can’t easily let you go; Acer and BenQ still have the market conflict. Both are the Pan Acer group, you must have some way to solve the internecine sting.
KY: Like we chose the way to make LCD monitor, we don’t want to compete with Acer, we should pursue our maximum profit for goal. So we change a macro market-- Cell phone.
The Way to Go
Talk about the way of product and company.
Evan: When you make the monitor, there were only a few competitors. But far cry from the cell phone firms, like Nokia, Motorola, and Sony Ericsson, they have own the market in Taiwan, so what is your strategy to face the giants.
KY: Just do our best. Samsung is the great brand in Korea, their design and marketing skill still ahead us, we try to learn Samsung’s advantage.
Evan: I believe you have done. You became the biggest Taiwan firm of cell phone product, and the top seventh firm in the world. How do you feel about the grade?
KY: Cell phone market almost develop to the top, I think the new product revolution is coming. The integration of market is essential, like digital camera and MP3 player, it’s all the direction of develop. You don’t need take more than 1 kg machine out door, and make the thread struggle your body again. Our new product Z2, it include the functions I mentioned, the evolution of product create bigger market. I know the competitor will more and more come to our face, and challenge BenQ, but I believe our real strength can face any problem.
Evan: Face the challenge from Acer, you didn’t run away. On the contrary, you chose to be the pioneer and find the new market, where your competitor still worry about go or not. Your brave make everything easy at the same time. Finally, I have to ask you a question, many years ago a report ask you the same question, and I have to make sure there is any changer in your answer. The big company chose to develop their business in Main China, there are cheaper labor and easygoing government, do you think BenQ will reduce the investment in Taiwan, and produce more little cost product in China?
KY: We have produced the scanner and monitor in China since 1989, the sixteen years never make any difference for me, except for I become old and BenQ become strong. If BenQ like a tree, I thought Taiwan is root, and company in the China just like the branch and leaves. Plant extend its branch to the place with sun shine is follow nature, and the root absorb the water to make all the plant can alive. If we stop give the water to root, the death will coming soon, and there is no use to get sun shine. Taiwan is our mother country, we live here and develop here, and I don’t think there is any reason to leave home. The big company chose China; they jump to the stage of world market, when they get completion, they still have to go home. So we use the cheap price from the world to feedback our family, that’s really our goal.