The Innovation Study of Light-Emitting-Diode Industry
Date Issued
2016
Date
2016
Author(s)
Yen, Chang-Ta
Abstract
In the LED field, affected by the maturity of technology, manufacturers who took advantage of vertical integration in the past have been seriously challenged by specialized module manufacturers who provide lower pricing, more flexible delivery, and friendly customization options. This research refers to “Late-Development Advantage Theory”, “Value Chain Evolution Theory”, “Disruptive Innovation Theory” and “Resource, Process and Value Theory”, and analyzes how the “LED Big-5”, Taiwanese, Korean and Chinese LED players behave to deal with the change of value chain. This study concludes that latecomers have great chance to take over forerunners’ share in the low-end market segment, and forerunners tend to migrate to high end market segment instead. Based on the studied case, suggestion to those companies squeezed by the Big-5 and Chinese players depends on their operation modes. For vertically integrated manufacturers, they should take “continuous innovation” strategy to challenge forerunners in the high end market segment, and for specialized module manufacturers such as LED package makers they should adopt “market-creating disruptive innovation” strategy to earn new markets.
Subjects
Light-Emitting-Diode
Disruptive Innovation
Type
thesis