Map and explain a position in the PC supply chain

Abstract: Background Supply chains in low margin, high innovation speed industries with strong customers generate a highly competitive environment. The conditions for such environment are continuously changing and put high demands on its actors. FlatFrog is a case company, which was founded in 2007 and develops a unique touch technology targeting a wide range of screens sizes and applications. External capital from Intel capital, among others, has enabled FlatFrog to aim for integrating their touch solution in the PC market. In order to be able to enter this low margin, highly competitive market, FlatFrog wants to analyze the alternative business models available, e.g. uses a licensing model or taking full product ownership and the risk of initial investments in terms of material and production facilities. The PC value chain and supply chain are tense and there is no space for decreasing economic margins in exchange for additional features. The result is highly competitive environment, which is extremely hard for new actors to enter. Hence, FlatFrog has an interest in investigating their initial position in the supply chain and which possible solutions there are in order to gain good profitability. IV Purpose The purpose of this thesis is to map and explain FlatFrog´s position in the PC touch supply chain and how it implies corresponding ways of making business and enter the market. By research create an understanding of the market, its actors and characteristics. Method In this thesis, a combination of the system approach and the actors approach was used as scientific approach. The data was collected by interviews, observations, focus groups, a literature review and continuous market research. The analysis was approached by an inductive approach where real life observations, by participating in meetings and studies of the latest trends in the consumer electric market, has been adopted after suitable models and accepted research to create a trustworthy analysis. Conclusion The choice of business model and supply chain set up not only should consider the characteristics of the specific company. It should also be based on the conditions of the market and the improvement of competition. The choice of model should always be challenged since these conditions continuously are changing. From a theoretical standpoint, a license model would be the optimal choice due to less risk and a fast market entrance. After increased insights and experience of the market and its supply chain it may not be realizable because of the characteristics of the market. Operational reality will always beat best theoretical strategy and a product owner model could even be a requirement to enter the market. Even if it not may result in short term profitability, future benefits generated by greater control could be enjoyed. Hence, it is difficult to determine the most optimal business model and supply chain set up for a specific company. It is in large extent dependent of the current status and agility of the market which will change over time.