Summary: | Even though TFT-LCD is a high-tech industry, it is a highly competitive business and the average selling price has been dropping year over year. The high technology no longer guarantees high profit margin due to intensive direct competitions among overflowing TFT-LCD makers. Every TFT-LCD maker is aggressively migrating to next generation fabrication and working rapidly to vertically integrate component suppliers to lower the cost. It is believed that in the manufacturing industry such as TFT-LCD is facing the toughest competition ever and all TFT-LCD companies are thinking of possible ways enhance their competitiveness regardless of their scales.
To analyze the current industry situation and provide suggestions to current players in the field, this research proceeds with the approach of case study. Using Porter’s Five Forces Model as competitive advantage measuring factors, we apply Value Analysis Tear-down method to see how it can influence each force.
Based on the case analysis, the author has reached the following findings:
1.Creating sustainable competitive advantages is very difficult by using cost reduction strategy only
2.Top management’s involvement of a new method or strategy can expedite the execution process and stimulate more innovative ideas
3.Future improvements derived from Value Analysis Tear-Down process must be constantly monitored and implemented to create sustainable advantages
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