Explore the Competitive Patterns of the TFT-LCD Industry - The Comparison among Japan, Taiwan, and South Korea

This study compared the business strategies of the TFT-LCD companies in Japan, Taiwan, and South Korea and found that the Japanese companies emphasized PDP technology and are trying to develop a substitute for TFT-LCD technology. In addition, the value added activities of Japan´s TFT-LCD companies focused on developing the brands and the R&D activities of key TFT-LCD technologies and on shifting the manufacture of TFT-LCDs to Taiwan and South Korea. The main value added activity of Taiwan´s TFT-LCD companies is manufacturing. Moreover, Taiwanese companies were engaged in forming strategic alliances with information and electronics companies in Japan as well as upstream component manufacturing companies and downstream information and electronics companies, and focused on industry clustering, and strengthening R&D capability. South Korea´s TFT-LCD companies pursued the advantage of economies of scale through South Korean government´s subsidizing and supporting in result that there are only two major TFT-LCD companies, Samsung Corp. and LG. Philips Corp., in South Korean. Moreover, South Korea´s TFT-LCD companies focused on developing process technology while achieving vertical integration, a full product line, a global brand, and strategic alliances.