Abstract
While the global TFT-LCD panel makers aggressively expand their capacity, the Backlight Module industry, one of the key component of TFT-LCD, has not only to grow itself very fast to meet the demand from TFT-LCD panel makers, but also to reinforce its co-dependency with the same to align the pace with emerging new applications of TFT-LCD panel. With the light shedding on the charming growth of TFT-LCD industry, lots of new players are entering into this industry with bold move.Notwithstanding, there could only be a few companies surviving the fiercely competitive market in the end due to the volatile change characteristics of such an industry as well as the subjective/objective conditions of the Backlight Module makers. In addition, the manufacturing bases of the global TFT-LCD industry has been spanning from Japan and Korea to Taiwan, and now, to China.What will be the impact on strategic layout of the Backlight Module industry by such volatile and rapid-changing dynamics? Will the first movers be the winners? What is the strategy to mitigate the internal issue and to react to the competition from competitors?Before arriving at the conclusion, this research will firstly explore context of development of the Backlight Module industry. Followed with various analytical angles, this research analyzes the low entry-barrier of technology and capital of the Backlight Module industry. While there are lots of companies enter into this market, this research comes up with the conclusion that only a few Backlight Module makers could survive, and further elaborate the feasible business model to meet competition for Taiwanese companies under the fiercely competitive Japanese, Korean, Taiwanese and Chinese market.This study finds that the technology similarity between the Backlight module and their existing product is not a "must" for success, though most of the new comers came from the plastic injection and molding industry. The first key to success is the core technology of optics. Without it, the first movers may not be in forerunners. The second key is the investment of R&D as well as the fluency of Japanese language. The last and critical key is the relationship with TFT-LCD panel makers and their support.This study suggests that, to compete with Japanese and Korean, Taiwanese Backlight Module makers could adopt the following operational strategies: (1) close cooperation with TFT-LCD panel makers by In-House or By-House manufacturing; (2) reinforce the relationship with or establishing joint venture or strategic alliance with the upstream materials and components suppliers; (3) standardizing the Backlight Module; and (4) following the move of TFT-LCD panel makers to shorten the supply chain.