Semiconductor Distributor regulate the market supply and demand functions, Also playing a bridge for the upstream IC suppliers and downstream system manufacturers. With the development of the industry, life cycle of end products is getting shorter, the upstream supplies can not precisely hold the marketing trend of end products.However, a professional IC distributor has marketing capability to grasp the trend of end products, to provide the integration of application consulting, logistics resources, services and therefore to provide a complete total solution of helping customers to develop new products . So the distributors increased in self-value-added and gained customer trust . Moreover, it enhanced the connection to customers and could lead the market gradually. So it still is a key position in the components supply chains.
Small- medium distributors not only face with the large domestic distributors but also on the face of international distributors competitive threat. By changing the marketing strategy, it may affect small-medium semiconductor distributor to choose a differentiated way, so they may develop of a unique competitive advantage. If distributors increase their technical capability for products application and provide a total solution to customers, they could lower the pressure to sell total solution instead of single parts. By providing total solutions and modules as selling point, it can raise the profit and also increase the connection between customers, therefore, strengthen the competitive power of enterprise.
This study focused on the transformation strategy of small and medium distributors. The study found that when facing marketing competition, small and medium distributors will have three kinds of Business Transformation strategies:
1. To go with the medium, and large distributors direction.
2. To go with technology-intensive direction to be a solution provider.
3. To make diversification strategy direction.
In this study, small and medium semiconductor distributors are main subject case study. The study through empirical analysis of the case and found out the business transformation of the three possible directions. And we are looking forward to providing a direction of thinking and hoping next researcher for further improvement.