A Study on the Relationship Between Business Strategy,and Competitive Advantage and Operating Performance of Taiwan's TFT-LCD Industry

• Main Authors: Tzu-fang Weng, 翁姿芳
• Other Authors: Chuang, Shuang-Shii
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/63627456234032039280

碩士 === 國立成功大學 === 高階管理碩士在職專班 === 97 === Abstract The TFT-LCD industry is Taiwan’s newly developing high-tech industry. This potentially world leading industry combines Taiwan’s electronics production advantages with developmental support from both government and business. Thus the TFT-LCD industry became a major target goal for economic development in Taiwan. Supply-chain management is very important in the TFT-LCD industry. The optoelectronics clustering in the more recently established Tainan Science-based Industrial Park, as well as in the Central Taiwan Science Park have laid down a solid production (manufacturing) foundation. When companies form a cluster, the aim is to reach a “critical mass” that enables the relevant industry to develop via the inner strength of the cluster, to build and adjust flexibly, and thereby to enhance its overall competitiveness. This research analyzed the TFT-LCD panel industry in Taiwan, and investigated the main manufacturers' business strategy through a case study. AUO, CMO, and InnoLux were chosen as the case targets. The purpose of this study was to discover the strategy which best supports the TFT-LCD panel industry. The means by which the companies utilized the resources of each manufacturer to reach strategy objectives are discussed. The study also makes an inference and analysis from the results, and provides suggestions for implementing and practicing the strategy for the future manufacturers of TFT-LCD panels. Results indicate that two main competitive advantages of Taiwan’s TFT-LCD firms: flexible manufacturing capability and excellent marketing channels. Most firms in Taiwan are vertically allied with suppliers and market channels to optimize every value activity that enhances the company’s competitive advantages. Therefore these firms must maintain core competencies, predict future trends in the crystal cycle and exercise decision making in competitive strategies. In addition, industrial merging and vertical integration in linking upstream, midstream, downstream sectors, are actively searched for. It is suggested that our government should provide a steady investment environment and continue to elevate the R&D capacity of the local firms in order to obtain maintainable competitive advantage in the TFT-LCD industry.