A study on competitive advantage of LCD industry in Korea
Date Issued
2008
Date
2008
Author(s)
Hee, Jang Yeon
Abstract
Korean LCD producers have been showing prominent achievement in the TFT-LCD market. Samsung Electronics and LG.Philips accounted for 39.7% of the LCD sector in terms of sales volume in 2006 and they ranked as 1st and 2nd place all over the world. Korean LCD makers has been put a lot of effort to occupy competitive advantages and continuously sustain leading position. And in effect, they are setting new objective to take 50% of world market share and export $38.5 Billion value production in 2010.owever, Korea LCD industry has recently faced with threatening in terms of international competitive edge due to rapid industry and market changes and the competitors’ decisive moves. Japan which has the strongest technology competitiveness has been showing aggressive pre-investment and affiliation trends. The most threatening competitor, Taiwan not only has strong government support and a full industry infrastructure, but also secures abundant sources of local component suppliers and a cheaper, highly educated labor force. As a world TV factory and the biggest customer in the world, China already has cost and geographical advantages and has been actively trying to be bigger by merger to compete with world market leaders. s for LCD industry which mostly requires huge amount of investment and contains exceedingly high risk, the decision of a right direction and strategy for the next movement is highly related with the firm’s survival. In the highly complex process of the planning strategy, it is required to identify and analyze various factors which affect internally and externally a company’s accomplishment. Here we’re going to take a look at general LCD industry characteristics and world and Korea LCD industry status first. Then TOWS matrix and Porter’s five forces model are going to be used to analyze Korean LCD firms’ advantages and tasks in the future. inally, In light of Korean LCD makers’ internal strengths and weaknesses and the external opportunities and threats from the business environment, four sets of strategies would be suggested. First, secure the market leader position in LCD industry maximizing strengths. Second, respond to market changes fast and focus on next generation technology. Third, increase localization and secure information. And fourth, increase profit and diversify product mix.
Subjects
LCD
Korea
TOWS Matrix
Type
thesis
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