A study on competitive advantage of LCD industry in Korea

Abstract

韓國液晶顯示器製造商已在TFT- CD市場有非凡的成就。2006年三星電子和LG飛利浦的液晶顯示器部門，其總銷售量佔全世界之39.7 ％，他們同時被評為全世界第一和第二名。韓國LCD製造商投入大量的研發及生產，以維持競爭優勢，並不斷保持領先的地位。此外，他們已設定新的目標，希望能在2010年達到全世界市佔率50 ％，且出口產值達385億美元。 然而，由於產業和市場快速變化和競爭對手的發展策略，韓國LCD產業最近在國際的競爭力面臨新的威脅。日本有強勁的科技競爭力，其咄咄逼人的前投資優勢以及產業之間聯繫的趨勢。台灣是最具威脅競爭者，因其不僅有政府的大力支持和產業的基礎建設，同時當地零件供應商有完整的供應鏈和廉價且大量高教育水準的勞動力。還有，中國作為世界電視機廠及最大客戶，已經具有成本和地緣優勢，並積極企圖藉由合併作為市場領導者。 LCD產業需要龐大的投資金額，並隱含有較高的投資風險。因此，正確的決策和投資策略，會影響到公司的生存。在極為複雜的決策過程，規劃策略--用來識別和分析各種影響因素以分析公司內部和外部的成就。我們首先回顧一般液晶產業的特性，分析世界和韓國液晶產業的地位。然後，以TOWS矩陣和波特的五力模型來分析韓國液晶廠商的優勢和今後任務。 最後，鑑於韓國LCD製造商內部的優點和缺點，以及外部的機會和經營環境的挑戰。有四種策略建議：第一，確保市場領先地位以及在液晶產業的最大的競爭優勢。第二，順應市場變化，並側重於新一代技術。第三，擴大本土化和商業資訊機密。第四，增加利潤和產品組合多樣化。

Korean LCD producers have been showing prominent achievement in the TFT-LCD market. Samsung Electronics and LG.Philips accounted for 39.7% of the LCD sector in terms of sales volume in 2006 and they ranked as 1st and 2nd place all over the world. Korean LCD makers has been put a lot of effort to occupy competitive advantages and continuously sustain leading position. And in effect, they are setting new objective to take 50% of world market share and export $38.5 Billion value production in 2010. However, Korea LCD industry has recently faced with threatening in terms of international competitive edge due to rapid industry and market changes and the competitors’ decisive moves. Japan which has the strongest technology competitiveness has been showing aggressive pre-investment and affiliation trends. The most threatening competitor, Taiwan not only has strong government support and a full industry infrastructure, but also secures abundant sources of local component suppliers and a cheaper, highly educated labor force. As a world TV factory and the biggest customer in the world, China already has cost and geographical advantages and has been actively trying to be bigger by merger to compete with world market leaders. As for LCD industry which mostly requires huge amount of investment and contains exceedingly high risk, the decision of a right direction and strategy for the next movement is highly related with the firm’s survival. In the highly complex process of the planning strategy, it is required to identify and analyze various factors which affect internally and externally a company’s accomplishment. Here we’re going to take a look at general LCD industry characteristics and world and Korea LCD industry status first. Then TOWS matrix and Porter’s five forces model are going to be used to analyze Korean LCD firms’ advantages and tasks in the future. Finally, In light of Korean LCD makers’ internal strengths and weaknesses and the external opportunities and threats from the business environment, four sets of strategies would be suggested. First, secure the market leader position in LCD industry maximizing strengths. Second, respond to market changes fast and focus on next generation technology. Third, increase localization and secure information. And fourth, increase profit and diversify product mix.