A Study on the Dynamics between Dominant Designs and Co-opetition Strategies of TFT LCD Panel Manufacturers

• Main Authors: Kuang-Lang Chen, 陳光郎
• Other Authors: Ji-Ren Lee
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/13284615573794020858

碩士 === 國立臺灣大學 === 企業管理碩士專班 === 97 === One of the major competitive strategies that TFT LCD panel manufacturers usually undertook was to preempt the production capacity of the next-generation LCD plants. During the industry development stage, the central factor leading toward investing in a next-generation plant was the extent of technology innovation. As the industry evolved, the technology innovation was treated as a given factor, while to dominate a particular product specification by means of production capacity expansion had become a new rule of competition among LCD manufacturers. Because each generation of LCD plant has its own sweet product sizes with optimum cutting efficiency, the product with better cutting efficiency therefore reveals better competitive advantages in terms of production cost. If there are more LCD panel manufacturers invested in the same generation plant, their collective output for this sweet product would be more likely to become the dominant design in the market. Taking this phenomenon into research consideration, the present study analyzes the logic and mechanism for the emergence of a dominant design in the panel market, with which understanding we elaborate how the LCD manufacturers could master the emergence of a dominant design with right capacity expansion strategy, hence creating competitive advantages. Our study concluded with two suggestions for the LCD manufacturers. First, the leading LCD manufacturer not only has to leverage its techonolgy strength to define the cutting-dege product specification by constructing next-generation plants, but also has to invest in production capacity expansion of next-generation plants. Second, to take the advantage of leading the emergence of a dominant design, LCD manufacturers shall leverage their co-opeitors to expand the capacity of focal next-generation plants, instead of constructing all by their own efforts. Implications for co-opetition strategies of LCD panel manufacturers are further discussed.