The analysis of the integration strategy of the five LED lighting manufacturers (2)

In the analysis of "integration strategy five LED lighting manufacturers (on)" in the article, the author analyzes the strategic layout of Philips, OSRAM, CREE three international companies, and in the second part, the author will carry on the strategic layout of two domestic manufacturers, Linsen Elec-Tech analysis.

In MLS package, and why?

In February 17, 2015, M.L.S. officially landed in Shenzhen A shares, while the market value is once ascribed to 30 billion yuan, the market value of A shares become the main business of LED packaging manufacturers in the highest one. The reason behind this is the large scale Linsen revenue 4 billion yuan in 2014, operating income has reached MLS record.

About the same time with the rise of several Chinese packaging factory such as nationstar, Ruifeng, Hongli, Linsen growth at an alarming rate, before 2008 each other's difference is not very big, but by 2014, the income scale is almost 3~4 times the distance apart.

Under similar operating environment and industry development trend, Linsen can achieve such rapid growth, which is probably the most important thing is to take the right strategy rawlinson. The total cost of the three basic strategic strategy is described by Mike Porter sen in the leading strategy, and once the strategy successfully established after the same and similar market, other companies are hard to obtain similar position. There have been a lot of low cost LED packaging factory in an attempt to mimic the Sen's leading strategy, but finally almost all frustrated, they probably forgot Potter also talked about only a market in an enterprise with the overall cost leadership strategy instruction.

However, taking the cost leading strategy has its risks, especially for example in market and technology changes quickly in LED industry, if CSP really advocates said, will eventually save the package link, then the current in the main package and packaging production scale and technology leading to the advantage of enterprises facing advantage no, the risk of lost competitiveness.

Especially like this almost past investment Rawlinson, mostly concentrated in the current mainstream packaging technology and production scale reached the forefront of the industry manufacturers. Although the scale has been an advantage, but in the time of industrial technology changes, the high cost of production capacity will inevitably lead to high corporate exposure in a high degree of operational risk. As the middle packaging manufacturers, the competitive advantage of accumulated capital advantage, control key upstream chip resources and downstream channel resources, reduce the risk of single industry chain is the right move. But frankly, even if the added value part of the package is the LED value chain disappeared, through upstream and downstream resources existing resource advantage or acquisition, can still support the company's continued development, but there are still internal use value of existing capacity.

With the vertical integration of logic analysis, can be summarized as the package size, and market transaction because of the risk of technological changes to enhance the transaction cost, and LED lighting products sales channels and brand will become more special type of assets, so it is necessary to adopt the vertical integration strategy.

This also explains why in the past few years, although in the Chinese Linsen packaging factory revenue in the first place, still spare no effort to enter the lighting market, open up channels, causes heavily to build brand lighting. However, a hundred years of history of the lighting industry, the electronic industry Linsen advantages derived from the advantages of scale and manufacturing capacity, but in the aspect of brand heritage and consumer awareness is far from the old lighting company.

And in the global lighting market, more Linsen belong to the new entrants, facing the transnational management, brand building and a series of problems, and the acquisition of OSRAM can complement the short board, to actively create LED lighting brand Linsen, by OSRAM general lighting channels and the sea. OSRAM lamp and the continued loss of departments may benefit from our cost control ability and scale advantages, to achieve profitability. This is why our announcement of its board of directors authorized sun Qinghuan chairman on behalf of the company to negotiate the acquisition bid for OSRAM Licht AG (OSRAM) part of the lighting business assets.

Buy the NVC, stepped on a mine; buy OSRAM, what will happen?

The analysis of the advantages and disadvantages of the integration strategy ---- Elec-Tech

In addition to publicly expressed Linsen strong interest in OSRAM Lighting Department bid, the industry generally speculated another strong competitor is elec-tech. When it comes to mergers and vertical integration in the LED industry, there is no doubt that the master elec-tech.

In March 2009, the original main small appliances listed companies Elec-Tech is through the acquisition of Guangdong jianlongda implementation into the LED industry, and in the same year the acquisition of Shenzhen retop display, enter the LED display industry, since it is a big investment for placement of LED chip and package business through two grade market. At the time when the most Chinese LED manufacturers or professional positioning, Elec-Tech stepping into vertical integration strategy of LED industry is to build the whole industry chain company to appeal and sought after by the capital markets, the stock price from the beginning of 2009 to 3 yuan rose to April 2010 up to 24.49 yuan (not right).

However, the difference between good and bad strategies is obviously not the strategy itself