China's led enterprises need to "strategic breakthrough": in the background of national vigorously promote energy-saving emission reduction and low carbon economy, China's domestic LED enterprise hard skills, seize the favorable opportunity for development, against the global financial crisis, and achieved gratifying results. Behind the achievements and opportunities, Chinese LED enterprises are still facing severe challenges and crises. The lack of LED wafer and chip technology patents, long-term dependence on imported core technologies, enterprise independent innovation ability, high cost, are flawed in China LED enterprises. On the surface, the lack of core technology is the bottleneck of the development of LED enterprises in China, in essence, the strategic issue is the biggest bottleneck in the development of LED enterprises in china. The enterprise is profitable because of the management, and develops because of the management. It is successful because of the strategy. Technology is a powerful competitive weapon, but only under the guidance of strategy, technology can play a significant role. Pei Zhongyang, general manager of Golden Gulf consulting, said: strategic positioning determines the expansion of the way, the expansion of the allocation of resources. On the other hand, the allocation of technology resources is decided by the expansion mode. Therefore, strategic positioning determines the allocation efficiency and output level of technical resources. Therefore, China's LED enterprises need to rethink the strategy to achieve strategic breakthrough.
Value chain analysis of LED industry in China
(a) the industry value chain in the "smile curve" rules usually complete value chain including technology research and development, raw material procurement, logistics supply, processing and assembly, order processing, marketing, brand service seven main link. The last century at the beginning of 90s, Taiwan Acer Group Chairman Mr. Stan Shih proposed the "Smiling Curve", with a parabola opening upward to the performance of the industry value chain value-added situation. The front end of the technical research and development and back-end brand service two links of the highest added value, while the middle processing and assembly of the added value of the minimum. The added value of different sectors of the industry chain into a line, formed a relatively symmetrical "smile" curve shape, named "Smiling Curve".LED industry value chain including the main part of wafer design development, single chip design and development, such as the purchase of raw materials, epitaxial chip processing, packaging and testing, LED application, seven service brand. In the international LED industry value chain, Japanese and American enterprises basically monopolize the epitaxial wafer design and single chip design, in the high-end value chain added value; China LED enterprises are mainly engaged in LED packaging and testing LED applications, in the low-end value chain value added.
(two) China's LED industry value chain "long tail curve" feature we found that Chinese LED industry value chain added value curve is not relatively symmetrical, but the "Smiling Curve" asymmetric "smile curve", or "long tail curve". The LED industry chain in China, LED epitaxial wafer and LED the chip industry accounted for about 70% of the profits, the LED package is about 10%-20%, the added value of LED application in about 10%-20%. LED epitaxial wafers, the front end of the value chain development LED chip design and processing occupies a high added value; in the LED application, the brand service value chain back two links is very low. In this way, the value chain of the front-end, back-end and in the low end of the value chain packaging test, into a curve. The curve does not form a relatively symmetrical "smile curve", but the "long tail curve".LED industry belongs to the high-tech industry, its high technology content characteristics of a certain extent LED epitaxial wafers, LED chip design and development and processing of high added value.
But that's not the main reason. China's LED industry competition pattern is the main reason of LED industry added value curve showing "long tail curve". In the design and development of the epitaxial wafer and the design and development of the single chip, the LED enterprises in our country are in the position of absolute weak competition. The Japanese and American enterprises by virtue of technology patent monopoly, the added value of high technology, resulting in China's LED industry value chain of high added value (profit almost by Japanese and American enterprises share). As a result, most of the enterprises that rely on imported technology patents in our country are faced with the high cost of LED. And the market can accept the price of LED products are capped. In the fierce competitive environment, the domestic LED enterprises in order to penetrate the LED application market, most of the price war. Eventually lead to LED applications and packaging test added value is compressed, its profit margins are suppressed. In addition, the development of China's LED industry is not yet mature, the brand operation and service marketing ability of LED enterprises is relatively low, and the added value of brand service is relatively low.
On the one hand, the added value of epitaxial wafer and chip technology R & D higher; on the other hand LED applications and value-added services brand was suppressed. In this way, China's LED industry added value curve "long tail curve", rather than "smile curve".
(three) the only change from the "long tail curve" to "smile curve"! Enterprises must focus on the development trend of the industry, industry boundaries and industrial upgrading. China's LED application market has great potential, LED will be widely used in large display, mobile phone display, TV display, automotive lighting, landscape lighting, commercial lighting, home lighting, traffic lights and other fields. This means that China's LED application market has great potential, LED application value will be greatly improved. With the scale of China's LED market continues to expand, on the one hand, more and more strong enterprises to enter the LED wafer, single chip technology development and processing; on the other hand, the application of LED and the added value of brand service highlights. Domestic LED enterprises to join the technology R & D competition, it is possible to break the Japanese and American Enterprises
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