Modularity, module reintegration and industry landscape remaking

LI Xiaohua

Institute of Industrial Economics, Chinese Academy of Social Sciences
Abstract:

The turn-key solution originated by MediaTek Inc. (MTK) changed the degree of handset modularity and sparked the rise of “knockoff handsets.” This paper holds that modularity is not a product of independent evolution and that the change in the degree of product modularity will lead to a change in the product’s organizational structure. Module reintegration has reduced the industry’s knowledge barrier and made it possible for a large number of low-tech firms to enter the industry in China. As a result, it has altered the industry’s competitive landscape. Module reintegration can be taken as an important path for industrial upgrade, and the industry regulatory policies shall also be adjusted according to the changes in this industry’s characteristics.

Key Words:

Modularity, module reintegration, value chain, industry landscape

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