The Routing Selection Of Upgrading Shenzhen Small And Medium-sized LED Enterprises

LED Industry is the one which the technology pilots. The position and the distribution of profits for a company are decided by the core technology and patents. Its has quite long industry chain including the upstream chain for raw material, equipment and the material of epitaxial grow, the midstream for producing chips and the downstream chain for LED assembly products. The profit share of material of epitaxial grow is 70%while the profit share of producing LEDs is only 1-10%and 10-20%for LED assembly products. As a result of without the core technology of the upstream chain and midstream of the industry, many of LED companies in China are squeezed to be in the downstream chain of labor intensive in which they mainly produce the low and middle end products and survive through price war and marketing.In Shenzhen, there are over 1500pcs of LED enterprises while 99%of them are small and medium-sized ones which produce the LED components and LED assembly products.The topic of this thesis is how the small and medium sized LED companies in Shenzhen upgraded itself to integrate the global LED value chain and take more premium.The thesis is to study the problems of the LED small and medium sized enterprises' upgrading in Shenzhen based on the global value chain. It tries to find the correct position of the LED small and medium sized enterprises of Shenzhen in the whole LED industry through deeply analysis of the LED industry chain and current situation of LED industry and comparison with the other five LED industry districts. The thesis concludes the current situation of Shenzhen's small and medium sizes LED enterprises and their advantages and disadvantages and finds the ways to upgrading with Porter's Diamond Model.That is, Shenzhen is the center of the national LED manufacturing. The thesis explores the most appropriate upgrading path for Shenzhen's small and medium sizes LED enterprises according to anaysises of the three kinds of upgrading choices for LED industry. The thesis points out that in order to promote the production efficiency, perfect the old products and making the new products the enterprises upgrade the processes and products and introduce new technologies new processes based on technologies. With these, it improves the additional value of the production processes, inserts the global value chain and to upgrade towards the two ends of the smile curve of additional value after accumulating the strength and experience. The innovation in the thesis is to completed conclude the experience of success for Refond,to give some ways to the companies for upgrading using the global value chain theories and give some specific suggestions. It is useful for the companies'strategic positioning, for embedding to the LED global value chain, for finding the ways of upgrading, for Realizing fast sustainable development and companies'upgrading into reality. Moreover, it is of great practical and guiding significance for improving the overall development of the LED industry level of Shenzhen.It has certain practice reference value for the domestic LED enterprises'development and upgrading.