A Study of Competitive Strategy for the LED industry in Taiwan —A Case Study of A Company
Date Issued
2014
Date
2014
Author(s)
Wang, Chao-Hsin
Abstract
Light emitting diode has been growing much faster in the past decade due to the improvement of technology. It is a technology that caused revolutionary change of human history since Edison invented the incandescent filament lamp. Similar to the difference between a digital signal to that of an analog signal, there is a fundamental difference between applying light emitting diodes on lighting applications and applying incandescent filament lamps as a lighting source. The material and technology used in solid state lighting with light emitting diodes is closely related to those used in the silicon semiconductor industry. The light emitting diode can therefore be integrated into an integrated circuit. It changes the conventional supply chain and industrial operation of the lighting industry. Many opportunities were found and many new companies have started to form the new industry of light emitting diodes.
The light emitting diode industry has been in Taiwan for more than four years. Today those small-to-mid sized Taiwanese LED companies face lots of challenges due to fast changes in the industrial environment. This study is to understand the industrial environment faced by these Taiwanese companies by researching the collected information. It is the purpose of this study to help these companies to understand their challenges and find out a suitable competitive strategy. It is also to find out how these companies should define their strategic position in the industry and create a unique and valuable proposition.
This study starts with analyzing the industrial structure and then utilizes the five force model as well as the Structure-Conduct-Performance model for further analysis. A small-to-mid-sized company was selected as an example for discussion. Starting from understanding its background information and then applying SWOT analysis, it is intended to find out a suitable competitive strategy and key successful factors for this company.
A final conclusion of this study for the small-to-mid-sized LED company was drawn. These type of companies need to be more agile and responsive in terms of market situations, while facing the competence from companies with scaled advantages or Chinese companies. It is also preferable to keep close relationships with key customers. Short lead-time and production cycle time will provide many competitive advantages. To achieve value innovation, one must position themselves to create values for both their customers and themselves. Differentiation and cost down is essential and should be achieved simultaneously. It is suggested to
Subjects
五力分析
關鍵成功因素
垂直整合
SDGs
Type
thesis
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