Q1 -Why do foreign manufacturers of electronic products use external distributors in Taiwan rather than establishing their own internal

sales offices?

• More focus on R&D rather than Distribution • Distribution added a low-value to the product • The potential savings by cutting distribution costs was minimal w.r.t the huge profits • Securing distribution rights was also a big challenge • Highly fragmented market of TAIWAN

Can the operational model of Synnex be extended to foreign markets?
Yes, it can be extended for following reasons• Foreign countries have similar problems of finding right distribution. • The market size is as big as Taiwan • MIS is a strong tool extendable to foreign market analysis • China- potential of improving the distribution system with large market size • The expansion in new products – leading to catering diverse demands

• Understanding rules and regulations of country • How to reach small vendors in the system • Identifying the gaps in distribution system • Use of MIS for specific research of demand and supply • Understanding demand of diversified products and their supply

if it works only in Taiwan, what modifications must be made in foreign countries?

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