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A Study on the Competition Strategies of Taiwan's Polarizer Enterprises

Polarizers are key components of TFT-LCD panels. Because their production demands high technical know-how and the supply of their raw materials was under the control of Japanese companies, these companies used to have few competitors and enjoyed good profits. Recently, however, panels have been mass-produced. Since their investments that often amount to hundreds of billions of NT dollars, panel producers have undertaken vertical integration in order to reduce costs for production. In order also to avoid being limited by the shortage of TAC¡Xan important component of polarizers-- panel producers have been reaching into the polarizer industry one after another. It takes a relatively long time to be able to control the quality of polarizers and to produce a large amount of them. At the present time, the leading companies are Nitto Denko and Suwitomo in Japan, and Optimax in Taiwan. Though the new comers to the polarizer industry so far pose no big threat to these well-established companies, their joining in means a warring age has set in for the polarizer industry. And this study of mine tries to analyze what cutting edge Taiwan¡¦s polarize companies have over their competitors.
To understand how cluster influences investments in and development of TFT-LCD industry, I study this industry in Taiwan. I use the Five ¡VForce Model and the Diamond Model proposed by Michael E. Porter to analyze the data. And then I study six polarizer companies in Taiwan, analyzing their developments and the turning points of their strategies. I hope I can make some contributions to the TFT-LCD industry in Taiwan.
In my research, I find that this industry has become an oligopoly. The important factors that determine a company¡¦s competitiveness are its R&D abilities, manufacturing technology, and policies in forming strategic alliances. I also find that local Taiwanese companies do not have an advantage over those leading Japanese companies in either their R&D abilities or their access to raw materials. Their hopes of survival lie in the differentiation of their products and in forming good strategic alliances with their clients.
The purposes of this thesis are four: (1) analyzing the polarizer industry in Taiwan and their competitiveness, (2) studying the key factors of their success or failure, (3) understanding why their CEOs decide to enter this industry, and (4) getting to know why they decide to leave this industry by being merged. My study has successfully fulfilled these purposes and in it are also several suggestions for the reference of those CEOs who are planning to enter this industry.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0812106-094847
Date12 August 2006
CreatorsTsai, Chi-hsun
Contributorsnone, none, none
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0812106-094847
Rightsnot_available, Copyright information available at source archive

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