Abstract
The increasing public awareness for environmental protection has brought substantial growth to the LED industry. For the past 10 years, the white light LED industry has focused mainly on the application in the panel backlight, and with the penetration rate continuing to increase, it is estimated to reach saturation in 2014. However, the optimisms in the past years have led corporations to expand its productions, which resulted in production surplus and lower loading rate. The prices of the LED therefore fell drastically, which caused many companies to fail. After experiencing the changes in the industry, the market has new expectations for the LED lighting application, therefore, many companies are again investing in the LED lighting related industry. The present study involves a Taiwanese LED manufacturer. As a startup company 4 years earlier, it performed well in the application of panel backlight throughout the years. With regards to the prospects of lighting applications, the company in this study employs strategic vertical integration, aiming at international branded corporations and distributors as their main customers and providing them with ODM service. The present study uses the double helix theory to analyze the current industry, it is estimated that the LED lighting industry will gradually move towards production integration mode. Analyzing the main international branded corporations and distributors, the study concludes four elements will be critical to success for ODM service, these four elements are “Speed”, “Product Diversity”, “Price” and “Partnership Relationship”. Furthermore, the present study conducts SWOT analysis and Five-Force analysis. From the Five-force analysis, “Customer bargaining power” and “Current competitor threat” presents threats to the company. Using SWOT analysis and taking into account the internal and external environmental situation, strengthening the advantages and opportunities, reducing disadvantages and threats are the center of focus. Combining the results of the two analysis, five strategies are provided to the company in this study: (1) strengthen the ability of cross department integration; (2) establish a technical platform for components and finished product; (3) strengthen product planning abilities; (4) strengthen resource utilization within corporation; (5) hardware and software integration, increasing additional values.