LED industry chain needs to be coordinated to enhance competitiveness
Since ancient times, there has been a natural selection, and the survival of the fittest. Today's lighting industry has long ceased to be in the stage of simple product competition, but has risen to the level of competition in the industrial chain. Both channel and application companies have the same confusion: how to do LEDs? As we all know, the product chain and the industrial chain have essential differences: the core of product chain competition is product integration, and the advantage is reflected in the total cost leadership. The core of the competition in the industry chain is demand response, and the advantage is reflected in the total value. In the long run, the latter is more competitive. Because the product chain competition is based on a certain enterprise, the integration of products is realized. The competition in the industrial chain is based on cooperation, and the entire industrial chain jointly fulfills the response to demand. Mr. Wu said that the attribute of the industry chain requires that the function and value transfer between each level must be on the premise of high efficiency, synergy and consistency to maximize the value of the whole industry. There is no synergy between the industrial chain and the above, and the competitiveness has no real meaning. The LED industry chain and the middle and midstream cannot quickly and effectively convert the technological achievements into production capacity, which leads to the unpredictable changes in the upstream and midstream technologies and costs. The upper and middle reaches lack understanding of the changes in downstream demand, leading to lag in innovation. Such a vicious circle has caused the downstream to fail to keep up with the pace of technology, cost, and demand changes, which has led to channel vendors' concerns, conservative orders, and dare to make large inventory plans. The upper, middle and lower reaches of each other are fighting, the enterprise's ability to resist risks is declining, and the channel vendors are in a Wait-and-see attitude, which makes the response of the application-side enterprises to consumer demand cannot be fast and efficient. Therefore, the inconsistencies in the technical, information, and interest behaviors of various links in the industry chain exist in the industry, affecting the competitiveness of members of the entire industry chain. The application-side enterprise and the channel provider cooperate to create a strong industry chain. The competitiveness of the channel industry plays a very important role in the entire LED industry chain. It is the final realization of the value of the industry chain, and has the most direct feeling for the needs of consumers. However, channel providers are also the weakest link in technology, cost and management in the entire industry chain. The application-side enterprise has the closest and closest connection advantage to the channel provider, and plays a leading role in the entire industry chain. Therefore, the consistency between the application enterprise and the channel provider is the key to the consistency of the entire industry chain. How to achieve consistent manufacturers? Wu Zhengyu, general manager of Everlight Lighting, said that synergy is a mechanism and model that is more competitive. In the initial stage of seeking cooperation, the company must have a sense of identity with the corporate culture, including brand positioning, product positioning, business vision, goals, interests, etc., and the understanding of the competition method should be consistent, such as business strategy priorities, operating models, How does the company develop and so on? Later, it is required to clarify their respective responsibilities and obligations, and go all out to undertake, understand each other in the process of continuous communication, and the way in which the work is carried out and the results require seeking common ground while reserving differences, seeking common ground while reserving differences. The competitiveness of a single enterprise is difficult to resist the risks brought about by the sluggish industry. The application-side enterprises and the channel partners can understand the division of labor and the direction of development, reach a long-term cooperation consensus, and strengthen individual competitiveness and ability to resist risks. Case: Yiguang and channel business strategic layout industry chain Everlight Electronics is the leader of Taiwan's LED packaging industry. In 2012, Yiguang Solid State Lighting Co., Ltd. was established. With its own resources in the field of packaging, we will create a competitive advantage in lighting applications. Under the leadership of General Wu in 2014, the Yiguang Lighting team and the channel dealers were highly interactive and established a close strategic partnership. Through the on-site inspection of the Everlight Headquarters, the 19-person executives of Everlight LED Lighting have earnestly understood the strategic height, comprehensive strength and world-class management level of Yiguang in the entire LED industry chain, and further recognized the Yiguang brand. , I am more confident in doing a good job in the Yiguang brand. Mr. Wu said that the core of Yiguang's layout industry chain is to let dealers participate in the operation of Yiguang, and to give full play to their sense of ownership, so that they can fully express their opinions and demand, and Yiguang grows with operators. With a sense of security, channel providers can achieve long-term cooperation and achieve a win-win situation.
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