Word: modell
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Dates: during 2000-2009
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...years as contract manufacturers, building and in some cases designing PCs, music players, cell phones, LCDs and video games on behalf of well-known brands such as Hewlett-Packard, Motorola and Apple. Taiwan's heavy concentration of contract manufacturers makes the country a high-tech powerhouse - but the business model has its limits. Because they work for others, contract manufacturers have little pricing power and don't reap the higher profit margins commanded by companies like Sony and Samsung. "There are very slim margins and you have to listen to your partner," says Peter Chou, HTC's CEO. "With your...
...Taiwan's success in electronics is a prime example of economic policies that lifted the island from poorhouse to powerhouse in a generation. But these days, the model that Taiwan has followed since the 1960s - concentrating heavily on building industries that could export to the wealthy West - has been exposed as dangerously flawed. Amid the global recession, electronics exports plunged 28% in the first half of 2009 compared to a year earlier, contributing to a 10.2% contraction of Taiwan's first-quarter GDP, the worst quarterly performance in the island's history. The government forecasts the economy will shrink...
...Whether such efforts can truly work may determine the fate of Taiwan's economy. "The old model is a top-down approach," says ITRI president Johnsee Lee. "The innovation economy has to be more bottom-up. It needs more talent." Morris Chang says Taiwan lacks that talent, because the country's education system stresses rote learning, resulting in "very little independent thinking and very little creativity." Chang also points out that Taiwan has to contend with a greatly changed international environment. "China wasn't in the picture 30 years ago, neither was India," Chang says. "You have a big competitor...
...somebody will have to pay - even, or especially, for the free stuff. Some journalism could become a kind of volunteer work, performed by eyewitnesses, passionate amateurs or professionals in other fields who use journalism as a loss leader to sell their books or build their brands. (That's the model of the legion of unpaid writers at the Huffington Post.) Even if you filter your own news from Twitter, you're paying in time and effort. (Watch an interview with Arianna Huffington...
...plan that some critics say couldn't possibly compete effectively the way a public option could. The legislation includes provisions for a public plan, but such an approach would be triggered only if the co-op plan doesn't prove to work in certain states or locales - a backup model based on President George W. Bush's Medicare Prescription Drug Plan. Many wonder if that will garner enough votes in the Senate, since it will most likely lose votes from both ends of the spectrum...