The Comparison of Competitiveness of TFT-LCD Firms in Taiwan, Japan and Korea-Based on Firm Level Diamond Model
Date Issued
2005
Date
2005
Author(s)
Lee, Li-Wen
DOI
zh-TW
Abstract
Characterized with highly capital-intensive and complicated involvement with upstream and downstream firms, Thin Film Transistor Liquid Crystal Display (TFT-LCD) industry is one of the industries emphasized by the government in Taiwan. Thus, TFT-LCD industry is worthy of careful study by all related companies and our government. Analyzing the source of competitiveness of the major players in the market and reviewing the deficient advantages can let companies adjust their strategies in time and avoid the business risk to a nation or society coming from the operation failure.
Using Michael E. Porter’s diamond model as the structure, I selected some factors that were suitable for the competitiveness analysis at firm level and collected data of the research objects. To have the same comparative foundation, I only chose five Taiwanese, one Japanese and two Korean TFT-LCD manufacturing companies as the research objects. The date I collected for each company included quantitive and qualitive ones. Before the competitiveness analysis, I excluded some quantitive factors that were not significantly influenced the financial performance by regression analysis so as to avoid the noise disturbing the latter analysis.
Base on the analysis, LPL (LG Philips LCD) is most competitive in all respects, following by Samsung. Sharp overall doesn’t stand out as the result of the weakness of Japanese Government and AUO (AU Optronics) has an advantageous position relative to other companies in Taiwan. Additionally, because of the similar business strategies, there is no notable difference in the source of competitiveness between these two Korean companies. On the contrary, because there is more TFT-LCD manufacturing companies in Taiwan and the parent company of each one has different occupational activities, each TFT-LCD company has different source of competitiveness. The result of weakening of competitiveness by each other is that the TFT-LCD industry in Korea has more competitiveness than in Taiwan.
Finally, I suggest that Taiwanese companies eliminate the uneconomy arising from duplicated investment through merging and acquisition. I also recommend our government officials that when they establish industrial policies, they should carefully consider the influence of any policy to the whole value chain.
Subjects
TFT-LCD產業
競爭力
鑽石模型
TFT-LCD Industry
Competitiveness
Diamond Model
Type
other
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