Foxconn, the world’s biggest contract electronics maker, has experience a 1.5% increase of profits compared to the very beginning of this fiscal year. Based on the central company in Taipei, Foxconn has already set up lots of factories in China, where could reduce their fixed cost by offering cheap source of plant and labor. They are basically offer the assembling business for the their partner companies I.e. Apple. In the other word, the majority of their revenue is coming from their partners who are also their core consumers.
However, Hon Hai, who is the leader of Foxconn recently, decided to shift their original business model. To be more specific, rather than being used by most of the big technology giants around the world, Foxcoon start to be more consumers driven and establish their own brand of accessories.
In terms of customer driven, Foxconn plan to invent a typical “Foxconn” products in order to meet the special demand of diversity of customers. Therefore, they are recently bought fourth-generation mobile licenses, which are regarded as a sunrise industry in recent year. As we all know, a company could not survive without their own value proposition in such a competitive market. Thus, the shifting from assembling other brand products to inventing identical products could provide Foxconn with a better opportunity to success, more importantly, reaching out a great number of customers and maximizing their profits constantly.
What is more important is that they could establish their own brand of accessories. In other words, they are no longer connecting their revenue with the partner companies, which is quite risky for the further extension of a company.
With more identical products and stronger customer base, Foxconn will be on the right track of achieving their goals of shifting their business model.