There's no place like home
One thing that is especially gratifying about Moxa is that all of their products are still "Made in Taiwan."
Ben Chen quite frankly admits that they have discussed internally whether to set up operations in mainland China or some other place with cheap labor in order to lower costs. But they have decided to stay in Taiwan. "Our products have to be tailored to meet the specific needs of each client. That means we produce a wide variety of products, each in small numbers, but with high profit margins, and this is precisely the combination of characteristics most suited to development in Taiwan. If we relocated, it is likely that the local industrial chain would not be able to meet our needs, and that would be penny wise but pound foolish."
As for how "404 Technologies" got their English name, Ben Chen recalls with a laugh how-once they had decided they wanted a name of two syllables that would be easy to say and easy to remember-all the staff flipped through dictionaries furiously searching. Finally someone came up with "moxa," which is the short name for the dried mugwort leaves used in moxibustion. This herb is said among Chinese to be good for relieving distress among the ill and troubled, as well as for dispelling malevolent forces, which are ideal characteristics for the image the company wants to project.
In addition, the name reminds people that the company is rooted in Taiwan. "The US company Cisco got its name from the city where it was established, San Francisco. There is the same happy coincidence of sounds between 'Moxa' and 'Formosa,'" says Chen with a smile, recalling that Formosa was the earliest name Western navigators gave to this island.
The Moxa Group also includes three other subsidiaries, which are involved in the fields of serial communications, industrial Ethernet networking, embedded computers, and industrial wireless communications. They have also set up branch offices in China, the US, and Germany. This year group revenues will reach NT$2.5 billion, and are expected to hit NT$5.0 billion by 2009.
When you ask why the company has been so successful, Ben Chen cites "keeping focused on core operations" and "staying up to date" as the keys. He notes that when the Internet first boomed back in the 1990s, the company considered also going into the consumer electronics market, but decided not to, a decision which has been proven correct by subsequent events.
Taking care of the homies
Another competitive advantage that Moxa has is its corporate culture of concern for the well-being of its employees.
Whereas most companies emphasize sales, Moxa's philosophy "puts employees at the core." It is hoped that after employees enter the firm they not only will have a chance to use their talents fully and find financial security, but also raise their personal quality of life. Thus the company not only encourages staff to form hobby clubs, like those for photography, hiking, and softball, each year they provide one paid day for employees to engage in public service action. They have also established a foundation and a volunteer organization, subsidizing butterfly ecology education at more than 20 primary schools in Taipei and Taoyuan counties. Moreover, each Monday morning between nine and ten is set aside for employees to read. They can read any book they like, but are "strictly prohibited" from working, answering the phone, or going online. The company picks up the tab for all the books.
At present Moxa has no plans for a public offering. One reason is a concern that if its shares go on the market, stockholders might pressure the company to sharply reduce employee fringe benefits. So the bosses at Moxa prefer to keep the things the way they are and follow the beat of their own drum. Considering this year's fabulous sales numbers, employees seem to be inspired, which gives Moxa a warm and human quality that sets it apart in the silicon artificiality of the technological world.