Abstract
This research focuses on how a Taiwan small and medium size TFT-LCD firm may use blue ocean strategy to gain competitive advantages. Through a combination of case analysis and derivation, we observe that SWOT analysis can lead in the blue ocean analysis, and the blue ocean analysis can strengthen the SWOT analysis results. We can utilize SWOT analysis to filter the chances of blue ocean analysis and utilize the four-action framework of blue ocean strategy to enhance the value-creation aspects of SWOT analysis to reduce the weaknesses and threats and to raise and create strengths and opportunities. Specifically, the study emphasizes the first step toward formulating the strategy for value innovation of blue ocean strategy which is building the capacity to create new market space that is uncontested, and breaking the common grounds with the six-path framework. The success of the E-paper display (EPD) market of the case is based on: 1) having a great vision and strategic analysis for EPD, 2) utilizing TFT-LCD technology to produce EPD and building a unique mass production ability, 3) attracting and cooperating with proper marketing partner, 4) creating the demand of market and environment at right time, 5) improving the manufacture of the products constantly to meet customer's demands.