| dc.description.abstract | The rise of the Korean manufacturers in recent years has not only successfully created Korean product brands, but also resulted in a cut throat competitive market for the Japan-based manufacturers, who specialize in critical upstream components, as well as the Taiwan-based manufacturers, who are highly focused on the OEM model. This is especially true in the TFT-LCD and DRAM industries, where strong competition derived from Korean business model innovations has prompted both Taiwanese and Japanese companies in these industries to call for emergency financial assistance and loan re-structuring from their respective governments.
In this study, Company A, a world class leader in chip design and manufacturing in the LED industry, is confronted with high competition in TFT-LCD backlighting, which is dominated by Korean companies. Meanwhile, the enormous business opportunities of LED’s in lighting applications is emerging. This study proposes an innovative business strategy to counter the competitive pressure in the backlight market, and to crack into the emerging lighting market.
There are many factors affecting the success and failure of enterprise operations. One of the most critical factors is effective strategy deployment and execution, which are highly related to organizational culture, management philosophy, and innovative business model. In the red hot competitive environment for modern businesses, the technical advantages among leading companies have been squeezed, and almost always becomes an insignificant factor. In order to create competitive advantage, business operations face challenges of speed and innovative responses in the market.
In this study, industry analysis methods are applied to analyze the LED industry, as well as the differences of backlighting and general lighting market. An innovative business model and its matching action items are designed for Company A to enter the emerging lighting market, which is originally its downstream market. A feasibility study was also conducted, and concluded feasible. The result is a recommendation for top management for Company A to enter the lighting market through virtual vertical integration.
| en_US |