Abstract
Rely on the experience from semiconductor industry, panel industry and ICT industry, Taiwan has accumulated a lot of knowledge of LED industry-related technology. In the last decade, Taiwan LED industry invested and developed aggressively, therefore, LED industry supply chain establishment is also very complete. LED market demand was quite small earlier, and the industry development was also constrained. Nevertheless, the rise of environmental awareness forces governments to introduce energy-saving policies and invest more in LED-related industries. LED industry was blooming but also faced over-investment. For those companies that already invested a lot of resources can only choose continually capacity expansion to achieve certain scale of mass production and reduce production costs. In the end, they can only cut price to pursue bigger market share and to gain profit. When the result of the market demand is far greater than its supply, the overcapacity problem will emerge. The case company, a sapphire company, is one of critical materials provider in LED industry. In this paper, SWOT Analysis and Five Forces Analysis are used to identify what the case company position and its role at this current stage in LED industry. It helps the case company to consider in a number of mutual market factors associated with industry situation when making decisions or adopting strategies. Moreover, adding the model of Value Net concept for the market dynamic integration and co-opetition strategies development help the case company break the existing industry overproduction and price competition plight. A co-opetition mindset actively looks for ways to change and expand the business, as well as newer and better way to compete the market. The case company uses co-opetition strategy to work with international competitors to change the competitive market structure and rapid expand the international market. The result of co-opetition is to create the corporate value and achieve its sustainable corporate management and business development objective, as the case company and other critical materials manufacturers in the international market promotion of reference.