Applying Strategic Cost Management for the Integration of Industrial Value Chains ~ the Industry of Key Components of TFT LCD

• Main Authors: Juei Tao Shih, 石瑞道
• Other Authors: 溫秀英
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/70009718601575379595

碩士 === 長庚大學 === 企業管理研究所 === 93 === In Taiwan, TFT LCD is the most important photoelectric industry these years. To fight for the competitions from Korea and Japan, all panel companies warily endeavor in not only the quality improvement, but also the cost reduction. In general, direct material cost accounts for about 60%~70% of the total cost. Therefore, how to integrate the material industries becomes the critical topic for panel companies. Past studies in the vertical integration of TFT LCD mostly limited in the discussions of the importance of upward integration strategies, but seldom provided concrete information to demonstrate if it was worthy of investing in the target industry from the viewpoint of financial characteristics. Through the perspectives of industrial value chain, vertical integration and strategic cost management, this study analyzed the industries of key components in TFT LCD, such as substrate, color filter, driver IC and backlight unit, and evaluated the financial suitability for panel companies to have upstream integration by the returns in each industry. In addition, the feasibility for upstream integration was also studied through analyzing the inside knowledge, raw material supplement and market status. The results showed that from the viewpoint of return, driver IC should be the first priority for integration and polarizer next. However, when considering integration, panel companies should think more about if they can really control the upstream industries of the components. Only through this thorough analysis, the success of integration could be ensured. This study intended to provide a reference for panel companies in choosing integration strategies through this kind of analysis.