| dc.description.abstract | In the past, ITO conductive glass has played a dominating role in the flat panel display and touch panel market. However, in order to meet the needs of consumers, the global new display and touch technology industry has sprung up and flourished. In a saturated and oversupply market, low-end STN LCD displays and resistive touch panels have gradually been replaced by new technologies. In order to survive, each technology camp can only grab orders and engage in price war. Finally, STN LCD monitors and resistive touch panel manufacturers can only withdraw. The market may change to the OEM production in China, and retreat to the smaller display market such as vehicle, industrial control, medical care, and service. Therefore, the demand for ITO conductive glass market has become sluggish in recent years.
In a shrinking market, Taiwanese ITO conductive glass manufacturers are faced with severe competitions from Chinese competitors, who are large-scale vertical integrators. Under such an adverse situation of industrial chain imbalance and price competition from China, the market share of Taiwanese ITO conductive glass manufacturers nosedived. They can either choose to price compete with the Chinese counterparts and strive for a niche to survive, or find an alternative solution. Under the condition of descending revenue and gross profit margins, the operation has also been put to the test, and ultimately they must choose to transform or to withdraw from the market.
The focus of this study, Company B, is one of the few surviving players mentioned above. This study started out by analyzing its position with the “Five Forces Analysis Model” to clarify its market positions in the ITO conductive glass industry. Four possible solutions, involving downward integration, and various arrangements for cost cutting, are designed and analyzed. A shrewd coopetition strategy was found to be the best alternative, possible to improve the continued sluggish gross profit margin for Company B.
After the proposal was actually put to field trials for six months, results confirmed that the coopetition strategy succeeded in creating new added values for Company B, improving its cost structure, achieving profitable results, and redefining future operational strategies and policies. | en_US |