Wednesday, February 1, 2012

LED lighting industry's success - centralization and decentralization

Market research agency estimates that the global lighting market in 2012 will reach $ 117.8 billion, the Chinese lighting market is to reach 100 billion yuan in 2010 a large scale. In this year the trend of low-carbon energy, rapidly emerging as a new generation of LED lighting technology standards, lighting further stimulate market demand recently. Such as the EU and China are planning to phase out in 2012 all the old-fashioned incandescent bulbs.

However, faced with such a huge market, wholesale China LED Flashlight business leaders, such as Op and NVC, after a decade of exploration and development in China, do not have even 1% market share . The global lighting industry giant Philips, Osram or GE's success simply because they do have a long history of accumulation?

Not the case, we find that the last 20 years, Japan's Nichia, Seoul, Korea, China Taiwan Semiconductor and Everlight are breaking the monopoly of the Big Three. Why is this?

We analyze the success of the lighting companies and found that they have the following in common: with the core technology, through cross-licensing between manufacturers, to build technical barriers to achieve technical "authoritarian" to restrict competition in order to improve profitability; the same time opening up the patent technology, the depth of cooperation with downstream manufacturers to "decentralization" to broaden the market and grasp the development direction of the mainstream market.

"Seize the balance of centralization and decentralization, give full play to the effectiveness of technology", this common ground, it is the nature of the lighting industry.

Success: a single point beyond imitation and technology

Enterprises need to have a competitive technology, broke into the core of the circle. Technology as a weapon, the formation of alliances. Play capacity through decentralization advantages, expand the market, so that technology to get more applications.

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