Competing in the Global LED Industry: The Case of Taiwan
Table 6
SWOT analysis of Taiwan LED industry.
Strength
Weakness
(1) Rank Top 1 for LED revenue in 2010, 2011. (2) Advantage of Taiwanese electronics industry. (3) A complete value chain of Taiwanese semiconductor industry was built up. (4) A complete value chain of Taiwanese LED industry was built up. (5) Taiwanese firms have experience in technologies and managements. (6) Taiwanese firms can provide customized service. (7) The LED has been supported by the Taiwanese government.
(1) Taiwanese firms follow the OEM mode. (2) Taiwanese firms are Weak in establishing branding. (3) R&D inputs are relatively limited by Taiwanese firms. (4) Taiwanese firms focus more on cost down in manufacturing. (5) Key technologies are restricted by patents held by international companies. (6) Taiwanese production is mostly exported. (7) Taiwanese suppliers rely on unilateral authorization from international companies to obtain key technologies.
Opportunity
Threat
(1) Governments worldwide have implemented energy-saving policies. (2) Improvements in LED performance can be employed in many fields, for example, energy-saving lighting. (3) Taiwanese LED products have lower price in the global LED market. (4) Emerging markets are increasing.
(1) Taiwanese suppliers are primarily OEM oriented. (2) Capabilities for high-end products are relatively weak. (3) Korean and Chinese Panel manufacturers are developing rapidly, becoming strong competitors of Taiwanese firms. (4) Traditional lighting products are competitive products for LED lighting products.
