Abstract
In the TV industry, the market scale is about 150 million, and be forecasted to 200 million in 2010. In the past 30 years, CRT rules the market. But recently, the FPD technology, like TFT-LCD`PDP, shows the great potential to replace the CRT TV market. Surely, Taiwan firms would not miss the big chance of TV replacement. Taiwan firms have some advantage in this market. First, Taiwan was one of the biggest bases of operations in CRT TV at 1970’s. Second, Taiwan has the panel resource, which is the key component of LCD TV. Besides, the ability of producting monitor and cost down make Taiwan’s firms more confidence. Nevertheless, there already have many competitiors, like Sony`Phillips, and Samsung, etc. They do know how to produce a right TV and send it to the right customer. In other words, those international big companies can master the characteristics of TV precisely. In the meanwhile, that is the weakness of Taiwan’s firms. This study use five force model developed by Michael E. Porter as the frame of whole study. Also, what this study be interested in is the different situation that different kinds of firm in Taiwan would face when they enter TV market. This study finally gets four conclusions. First, TFT-LCD will be the major standards in TV industry, but would be forced to share the market in large scale (over 40 or 50 inches) TV with PDP and RP TV.Second, for OEM/ODM firms, Japan’s company would not release their order easily. If Taiwan’s firm can’t provide well solution about cost/technology/location, the business model of LCD TV may as same as the period of CRT TV. Also, for the own brand firms, it’s hard for them to handle the characteristics, like picture quality, channels, and brand loyalty, in the mainstream TV market. But, those kinds of firm have big potential for the「second TV market」because their IT background is more suitable for that market. Finally, CE firms can keep their advantage in domestic market but so tough in the global. However, the appropriate strategy of negotiation with overseas company could be a solution for not only CE but whole Taiwan’s LCD TV firms.Keywords: LCD TV, five force model, OEM/ODM, own brand