Wednesday, September 7, 2011

Restructuring of the strategic positioning of LED lighting manufacturers value chain analysis

Business due to the profit, because Management The development, due to strategic and successful, due to cultural and evergreen. Technology is the powerful competitive weapon, but only under the guidance of the strategy, technology can play a major role. Kim, general manager of Gulf Consulting, Mr. Pei Zhongyang words: "the decision to expand the strategic positioning mode, the expansion determine the allocation of resources." In turn, technology resource allocation determined by the expansion, the expansion means from the strategic positioning decision. Therefore, the strategic positioning decision to technical efficiency of resource allocation and output levels. Therefore, companies need to rethink our LED lighting manufacturers strategy to achieve a strategic breakthrough. Analysis together LED lighting industry value chain.

(A) the industry value chain, "smiling curve" the law generally, the entire value chain including technology research and development, raw material procurement, logistics, processing and assembly, order processing, market Sell, Seven major aspects of the brand service. The early 1990s, Taiwan's Acer Group Chairman Stan Shih, President proposed the "smile curve", with a parabola opening upward to show the added value of industry value chain. Front-end technology development and back-end brand of the highest value-added services, two sectors, while the middle part of the lowest value-added processing and assembly. Different segments of the value-added chain together into a line to form a relatively symmetrical "smile" curve shape, hence the name "smiling curve". LED epitaxial film industry value chain, including design and development, single-chip design research and development, raw materials such as epitaxial procurement, chip processing, packaging and testing, LED applications, brand services, seven main components. LED industry value chain in the international division of labor, the Japanese and American companies basically monopolized the wafer design and development, and single-chip design research and development, in the value chain, value-added high-end segments; Chinese enterprises are engaged in LED and LED application packaging and testing led, in the value low-end value-added chain link.


Restructuring of the strategic positioning of LED lighting industry value chain analysis

(B) the value of China's LED industry chain "long tail curve" characteristics we found that the Chinese LED industry value chain, value-added curve is not symmetrical relative to the "smile curve", while the non-symmetrical "smile curve", or "long the end of the curve. "China's LED industry chain, LED epitaxial wafers and LED chips account for about 70 percent of industry profits, LED package about 10% -20%, LED application about 10% -20% in the value chain, the front of the LED epitaxial wafers , LED chip design research and development and high value-added processing occupies; in the value chain of LED back-end applications, the two aspects of the brand's value-added services is very low. Thus, the value chain in the front, back and low-end link in the value chain of packaging and testing, and even into a curve. The curve does not form a relatively symmetrical "smile curve", but "the long tail curve". LED industry is high-tech industries, its high-tech features to some extent determines the LED epitaxial wafers, LED chip design and processing aspects of R & D high added value.

However, this is not the main reason. Competition pattern of China's LED industry is currently the LED industry value-added curve showing the "long tail curve," the main reason. In the single-wafer design and development and chip design research and development, China's LED business is absolutely weak competitive position. The Japanese and American companies in technology with the patent monopoly, overstating the value-added R & D areas, resulting in the LED industry value chain, value-added high front-end (profit almost Japanese and American companies share). Therefore, China relies heavily on imported technology patented LED technology companies are facing high costs. The market price of LED products is acceptable upper limit. In the fierce competitive environment, the domestic enterprises to penetrate LED LED application market, they use a price war. Eventually leading LED packaging and testing applications and value-added is compressed, its profit margins have been suppressed. In addition, China's LED industry is not yet mature, LED company's brand and service operations Marketing Relatively low capacity, relatively low value-added branded services.

One wafer and chip technology developed by value-added is overstating; other LED light bulbs applications and value-added services brands are suppressed. Thus, the curve showing the added value of China's LED industry, "the long tail curve" rather than "smiling curve."

No comments:

Post a Comment