Article ID: 0170607a
In contrast to the slump in the electronics industry, Japanese electronic parts industry shows positive business performance. However, its profitability differs widely according to the type of supplier. In comparison with a generalized supplier, a specialized supplier tends to realize higher profitability. Why a specialized supplier is securing competitive advantages than a generalized supplier with synergy effects? To this question, this paper considers the fit between architecture strategy and product development system of a specialized supplier. Then, through in depth case study of Iriso Electronics, this paper demonstrates that competitiveness and profitability of a specialized supplier is not necessarily attributed to only one architecture strategy, which means that a specialized supplier develops multiple architecture strategies and establishes product development system and process that fit to these strategies.
