A Comparative Study On The Business Models Of Brighten Film Business In Company A And Company B

Display technology and display component technology occupied crucial position in the development of the information technology. Starting from 1990s, together with technology breakthrough and significant demand climbing, the FPD related business represented by LCD(liquid Crystal Display) material emerged quickly and became the main stream technology in FPD field. The industry and market continues to expand, and it also drives the fierce competition within this business.Being the important component in FPD system, Brightness Film(or Brightness Enhancement Film) also has broad prospective for development, especially in the quickly developing area like China and Asia. Company A used to be a leading international company in traditional photo image business. As part of the strategy transition, company A came into the field of brightness film at early 21 century, and started its business in China in early 2006. 3M Company used to be the monopoly player in brightness film market. With its advantage of technology dominance and patent protection, 3M was able to build advantage of market pre-entry and low cost via mass production, create high entry threshold and competition for new comers. Facing these pressure and competition from other new comers, it became critical that how company A establish its business model in China to gain the competitive advantage, and select the logistics model and network to match with its business model.This paper chooses the above problem and challenge as its focus of study. Using the frame work of Business Model and mesoscopic approach, this paper introduces the evolvement of brightness business in company A, analyze the reason for its business model selection and logistics model and network creation. The author also does some financial analysis, analyze the cause to its problem with the purpose to investigate if the root cause lies with the mistake of positioning of the business model and value proposition, or lies with the failure of the value supporting and value maintaining due to the poor function of the elements in core interfaces and related interfaces.With B Company's acquisition of brightness film business from A Company and following reorganization, the paper compares A company's business model and the new business model in B company, analyze the pros and cons of each business model, propose that each model needs to build solid value supporting and value maintaining to realize its value proposition. The paper described why it won't solve the existing problem and improves the financial performance just by replacing current business model with the new model of B company, and propose some countermeasures for those problems. Finally, on the basis of above analysis and statement, the author raised some comments for the establishment and selection of business model.