Analysis of the strategic positioning of LED lighting

Technology is the powerful competitive weapon, but only under the guidance of the strategy, technology can play a major role. Mr. Kim made Peizhong Yang, general manager of Gulf Consulting: "the decision to expand the strategic positioning methods, determine the allocation of resources to expand." In turn, technology resource allocation determined by the expansion, the expansion means determined by the strategic positioning. Therefore, the strategic positioning of technological efficiency of resource allocation decisions and the level of output. Therefore, companies need to rethink our LED strategy to achieve a strategic breakthrough. Analysis together wholesale LED downlights industry value chain.

(A) the industry value chain, "smiling curve" law generally, the entire value chain, including technology development, materials procurement, logistics, processing and assembly, order processing, marketing, branding the seven main service areas. The early 1990s, Taiwan's Acer Group Chairman Stan Shih, President proposed the "smile curve", with a parabola opening upward to show the added value of industry value chain. R & D front and back of the brand value-added services to the highest part of the two, while the middle part of the lowest value-added processing and assembly. Different segments of the value-added chain together into a line to form a relatively symmetrical "smile" curve shape, hence the name "smile curve."

        LED epitaxial film industry value chain including design and development, single-chip design and development, procurement of raw materials such as epitaxy, chip processing, packaging and testing, LED applications, brand services seven main components. LED industry value chain in the international division of labor, the Japanese and American companies basically monopolize the design and development of wafer and single chip design research and development, in high-end value-added part of the value chain; Chinese enterprises are engaged in LED and LED application packaging and testing led, in the value low-end value-added chain link.

(B) the value of China's LED industry chain "long tail curve" feature we found that the added value of China's LED industry value chain, the curve is not symmetrical relative to the "smile curve", while the non-symmetrical "smile curve", or "long the end of the curve. " China wholesale LED industry chain, LED wafer and LED chip industry accounted for about 70% of the profits, LED package about 10% -20%, LED application about 10% -20%. In front of the value chain LED epitaxial wafers, LED chip design and processing R & D share of high added value; in the value chain of the LED back-end applications, the two aspects of the brand value-added services is very low.

          Thus, the value chain in the front, back and links in the value chain, the low-end packaging and testing, and even into a curve. The curve does not form a relatively symmetrical "smile curve", but "long tail curve." LED industry is high-tech industries, and its high-tech features to some extent determines the LED epitaxial wafers, LED chips and processing aspects of design and development of high added value.

However, this is not the main reason. Competition pattern of China's LED industry is the LED industry value-added curve showing the "long tail curve," the main reason. Wafer R & D and design in single-chip design research and development, China's LED business in an absolutely weak competitive position. The Japanese and American companies with technical aspects of the patent monopoly, overstating the value-added R & D areas, leading to the front of China's LED industry value chain, high added value (profit almost Japanese and American companies share).