Research On LY’s AMOLED Display Business Competitive Strategy

In October 2014,China promulgated an action plan for the innovation and development of the new display industry,which highlighted the status of the new display in the information industry.Affected by relevant national policies,mainland LCD display manufacturers represented by BOE,Shenzhen Tianma and CSOT accelerated their research and development in the field of AMOLED display technology,and gradually began to enter the AMOLED display market in 2017 to achieve mass production.As a pioneer in this market,LY company is facing competition from new entrants in the market.As more and more new competitors join in the market,the AMOLED display market is shifting from the blue ocean market to the red ocean market.How to improve competitiveness in the process of market development has become an urgent problem.Based on the theory of competitive strategy,core competence theory,resource-based theory and dynamic competitiveness,this article systematically studies the selection of LY’s AMOLED Display Business competition strategy by using relevant analysis tools of competition strategy on the basis of domestic and foreign research literature and company research data.This article uses PEST analysis and five force model analysis tools to analyze the external environment of LY company,and finds out the external key factors that affect the development of LY company,and quantitatively analyzes these key factors through the EFE matrix.The analysis results show that LY company can better grasp the external opportunities,especially in terms of national tax policies and competitive advantages in the AMOLED display technology market.This article uses the value chain analysis tool to systematically analyze the internal environment of LY company,and finds out the internal key factors that affect the development of LY company,and quantitatively analyzes these key factors through the IFE matrix.The analysis results show that LY company has strong R&D and production capability,and the company’s internal advantages are obviously better than internal disadvantages.By using SWOT analysis tools,this article firstly analyzes the competitive situation faced by LY Company in detail,and analyzes the feasibility of the implementation of the three major competitive strategies in LY Company combined with the specific environment of LY Company.This article analyzes the key factors of the external environment and the key factors of the internal environment by using QSPM matrix,and finally confirms that LY company should adopt a total cost leadership strategy through quantitative data analysis.Regarding the implementation of the total cost leadership strategy,five implementation measures are proposed in lean production,quality,procurement,human resource and production scale.At the same time,strategic safeguard measures are put forward,which should be carried out in six aspects:corporate culture construction,technical process protection,talent training and incentives,organizational management structure,information management system and new crown virus protection.The research results can be directly applied to LY’s AMOLED display business competitive strategy selection and implementation,and can also bring reference value to related domestic industries.In particular,this article points out that the current market environment is changing rapidly,and there are more and more uncertainties,and the future competitive strategy adopted by LY Company should be adjusted in time with the change of the environment.