Letter To Shareholders - Mitac

customer satisfaction for a greater competitive advantage over rivals.
(1) Competitive edges
The core competitive strength in MiTAC’s wireless communications business and
products lines in: Sales development, R&D capabilities, effective cost control, stable
product quality and high-yield production process, fast mass production ramp-up,
inventory management and component procurement, thorough logistic support
capabilities, and market cooperation and sound financials.
MiTAC’s core competitive strengths are as follows:
A. The understanding of customer requirements and market directions: we work
hand-in-hand with all software and hardware clients to explore consumer’s needs;
in addition, MiTAC is trying to get joint ventures with several worldwide IT and
communications companies. Once we partner with them, we believe that MiTAC
will be able to know the next step ahead of time.
B. Collaborates with the best software and hardware vendors to ensure sufficient
material supply for key hardware components.
C. R&D innovation: Many of our products have won awards and become market
leaders.
D. Continues to improve product quality and production capacity: Our years of
experience in embedded systems are our unique advantage.
E. By taking advantages of existing channel markets and our group’s global logistics
and service network, MiTAC can provide more comprehensive customer service.
(2) Favorable factors for the prospects
A. The integration of all supply chains for the Internet infrastructure
MiTAC has developed an effective distribution approach to combining global
e-commerce mechanisms and by developing products with high unit prices with a
direct sales model, which greatly increased our efficiency, reduces costs and raises
customer satisfaction.
B. Global e-manufacturing model
After several years of refining our logistic model, MiTAC’s e-manufacturing
system has been completed. This system allows us to perform R&D and design in
Taiwan and in the US, to produce in China and Taiwan for modules and
semi-parts, and assemble in these BTO/CTO centers in the US, Australia, and the
UK. The whole system was designed by considering the factors of technicality,
cost for production, shipping and delivery, and tariffs. Taiwan is a major
manufacturer of motherboards, workstations servers and storage devices; whereas
less technical products with longer delivery times are made in Mainland China.
All high-price major parts can be acquired everywhere in the world. MiTAC’s
global organization has enabled us to become to an international e-manufacturer.
C. The expansion of high value-added products
In response to the connection of wireless network communications and
computers, MiTAC will continue to form strategic alliances with leading vendors
too. MiTAC introduced several navigation products ahead of its competitors in the
GPS market with superior innovation, design, R&D, production, and integration
capabilities. MiTAC combines voice and data communication through the
integration of computing and GPSMiTAC introduced several navigation products
ahead of its competitors in the GPS market with superior innovation, design, R&D,
production, and integration capabilities. MiTAC combines voice and data
communication through the integration of computing and GPS, thereby
maintaining competitiveness in functionality (multimedia, gaming, personal data
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