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Abstract
In the era of the rise of the red supply chain, the original industries in the manufacturing sector are facing new giant competitors, and this competitor has funds support by government, a big market, a lot of labor and resources of cheap land, the red supply chain provide the oversupply capacity to break situation of the balance between demand and supply. In the face of the strong supply of the red supply chain, the fierce low-price competition under the conditions of supply and demand imbalance caused by the expansion of production capacity has a huge impact on the core competitiveness, competitive advantage and competitive strategy of the entire industry.
Panel manufacturing is one of the industries that Taiwan was developed into a star industry. The manufacturers in the red supply chain quickly divided the advantage in the display industry supply chain. Taiwan is trying to continue its business in this wave of storms. Examine the self-competitiveness, use the five-power analysis to find out the core competitiveness, carry out strategic adjustments, shift from the cost advantage dominated by economies of scale to a strategy focusing on differentiation, examine the integration strategy of vertical and horizontal whether the diversification strategy has achieved results. However, in the market where market share and profitability are declining, it is hoped that Taiwan will have the opportunity to change its competitive strategy and regain competitive advantage from an unfavorable competitive environment. Whether the diversification strategy has achieved results.
However, in the market where market share and profitability are declining, it is hoped that Taiwan will have the opportunity to change its competitive strategy and regain competitive advantage from an unfavorable competitive environment. We hope to find a way to confront the red supply chain through the business model of this case study company.
Key words: Five Forces Analysis, Competitive Advantage, Red Supply Chain, Competitive Strategy， TFT LCD
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