Since the first light-emitting diodes with certain luminous efficiency have been produced in 1969, LED production has gone through nearly 40 years of development. However, in recent years, the LED industry has developed rapidly, and the products that use LEDs for secondary development and LEDs are rapidly expanding. Not only new products are continuously listed, but also many new industries have been formed. Moreover, in the near future, the development of the LED industry will face a broader development space. In particular, the LED lighting industry, even in the context of the global financial crisis in 2009, has continued to rise against the market, with sales totaling 100 billion yuan, still maintaining a growth rate of more than 30% year-on-year. LED has the characteristics of small size, low power consumption, long service life, high brightness, low heat, environmental protection, and durability. Under the premise that low carbon, environmental protection and energy saving have been recognized by the world, LED is recognized as An irreplaceable solid-state light source for display and lighting in the next 30 years. 1. Application field At present, the application of LED is mainly reflected in LED landscape, LED electronic display, LED lighting, LED traffic induction and automobile taillights, and automotive lighting, especially LED electronic display and LED lighting. 2. Technology development In terms of technology development, photoelectric efficiency has always been the central content that people are striving for. Leading-edge R&D engineers have never stopped exploring new optical materials, and believe that in the near future, people will get even greater breakthroughs in luminescent materials. In addition, the manufacturing technology, packaging process, manufacturing technology innovation, heat dissipation, attenuation, and service life of epitaxial materials and chips have also been an important field that related technical workers are constantly pursuing and exploring. 3, the current global LED pattern At present, upstream wafers are mainly controlled by European, American and Japanese companies, such as Cree in the US, Nichia in Japan, Toyota Synthetic, and Osram in Germany. South Korean and Taiwanese manufacturers are mainly engaged in fierce competition in the low-end and mid-range chips. In the upstream and midstream industries, Japanese companies account for almost half of the global LED production capacity. In addition, companies in South Korea and Taiwan have considerable strength, such as Samsung, Jingyuan, Jieyuan, Yuan Arsenic, Guanglei and other manufacturers. The downstream industries, especially low-power LEDs, have the highest packaging output in Taiwan, accounting for more than 60% of the world's total, and are still growing. Representative companies include Yiguang, Shunhong and Huaxing. In recent years, the domestic LED industry has also developed very rapidly, but it mainly concentrates on the production of low-end products in the upper and middle reaches or the end of the entire industrial chain. It is mainly engaged in the processing of the last link and the realization of supporting projects. The competition is fierce. Even if it is engaged in wafer manufacturing, domestically large-scale enterprises (such as Hangzhou Silan, Xiamen Sanan, etc.) are not comparable to European, American and Japanese companies in terms of product performance and price, and the price is less than Cree's products. Half of the price is less than a quarter of the price of Japanese Nichia products. Domestic and foreign and Shenzhen LED industry development status 1. Developed areas in the LED industry Japan, the United States, Europe and Taiwan are important bases for global LEDs. Among them, Japan has the strongest technical strength and almost monopolized all high-end markets. Taiwan, China, is the fastest growing region and has become the most important production base for LEDs worldwide. 2. Development status of domestic LED industry The Pearl River Delta region with Shenzhen and Guangzhou as the core, the Yangtze River Delta with Shanghai and Jiangsu as the core, the Lancang River Delta with Fuzhou, Xiamen and Nanchang as the core, and the northern region with Beijing and the three eastern provinces as the core have been formed. Waiting for the four major industrial distribution centers. Among them, Shenzhen's industrial chain is the most complete, and it also holds the highest position in the entire market share. 3. Development status of Shenzhen LED industry The Pearl River Delta has always been the processing center of the manufacturing industry. It is no exception in the LED industry. There are thousands of LED production, processing and trading companies of various sizes. Their common feature is that the products are homogenized, belong to low-end processing trade enterprises, and the competition is bad. Due to the pursuit of short-term interests and market-driven reasons, companies are reluctant to invest too much in research and development; some companies, even specializing in low-end products, are completely plagiarized and copied. On the whole, the lack of innovation and the willingness to invest in innovation are not strong; from the perspective of development planning, there is a strong blindness and lack of self-awareness; from the perspective of enterprise scale, it is subject to capital constraints and is mostly produced by small-scale production. Despite this, the LED industry in Shenzhen still has a lot to offer. First of all, the entire industry's supply chain system is very complete, able to get the best products, technical support and after-sales service at the best price. Second, the advantages of strategic alliances are highlighted. The relevant business leaders in Shenzhen are in close contact to discuss the ideas and strategies of enterprise development, with clear division of labor and complementary resources, and to some extent compensate for the shortcomings of single individual energy shortage. Again, the talent advantage is obvious. Shenzhen has concentrated a large number of LED production, R&D, sales and service personnel. Their skilled skills and full understanding of the industry enable them to produce and sell more high quality and competitive products, and to maintain their own place in the global competition. . In addition, Shenzhen also has a geographical advantage and access to the global logistics network. Especially adjacent to Hong Kong, many international trades have completed communication and exchanges with global buyers through this channel in Hong Kong; developed logistics conditions have provided better conditions for the development of Shenzhen LED industry. The overall development strategy and key breakthrough strategy of Shenzhen LED enterprises Shenzhen enterprises are mostly processing trade-oriented enterprises. Here, a medium-sized LED manufacturing enterprise is taken as an example for analysis and research. 1. Business objectives and overall strategic positioning Enterprises should have a clear understanding of their position in the entire industrial chain, concentrate resources, and do their most advantageous products, which is a typical case for comparative advantage theory. Here, it is particularly important to emphasize that a company engaged in packaging should avoid the production and sale of further downstream products (such as display screens and lighting) as much as possible, while one is engaged in the manufacture of end products (such as display screens or lighting products). And the production enterprises should avoid self-built packaging production lines as much as possible. Enterprises should also have sufficient knowledge and understanding of the target market of the products they produce. If the target market is not clear, it will lead to chaotic production planning, lost research and development direction, and difficulty in obtaining sufficient development space. Businesses should also set clear and achievable business objectives. Pure processing trade-oriented LED manufacturing companies have no future, and strategic transformation is a problem that such enterprises must face when they reach a certain level. Therefore, it should be combined with the short-term and long-term development strategies of the company to set realistic business objectives. Yes, pre-established, not pre-emptive. 2. R&D and intellectual property protection Some breakthroughs in research and development should be achieved as much as possible. Even for processing enterprises, there is still a lot of space for development in production technology, product design, practical patent invention, energy-saving and environmental protection design, and even in the realization of related comprehensive software and hardware. Purely homogenous products will inevitably lack sufficient competitiveness in market competition. Here are some of the more successful companies involved in the R & D investment can be used as a reference, that is, companies can get as much as possible 10% or more of the annual profit as an investment in research and development. Here, in particular, more investment in patented technology, product innovation and process innovation is needed. Of course, there is also a need for a certain degree of self-protection, and important inventions and creations require timely patent protection. The current chaotic competition in the market is also related to the lack of awareness of early related companies. 3. Marketing strategy Different product positioning, different marketing methods and strategies. It is recommended that enterprises produce high-end products and high-end products as much as possible while market capacity allows, and give up the low-end market to those enterprises that are more suitable for such products. From the marketing strategy, consider the unshakable route of channel sales is the key content of LED enterprise marketing. Nowadays, no LED company has the ability to form a service network covering the whole country and the whole world. Under the extremely fierce competition, it is difficult to make products and performances greatly surpass the status of peer companies. Therefore, the direct selling strategy is harming the channel benefits. It will not be conducive to the stable improvement of sales performance of enterprises, and the weaker ability to resist the internal environment of the sales network and the external environment of the system will eventually stay at a relatively saturated level and restrict the development of the enterprise. Today, the profit of direct sales in the LED industry is very rich and attractive. However, after fully considering the construction of the marketing system, it is necessary to appropriately abandon part of the profits and concentrate on doing more important things. 4. Risk control LED companies generally have small scale, limited financial strength, and limited ability to fight risks. Therefore, a complete risk control strategy should be set up. In product research and development, we strictly control the process and strictly control the quality. The development of new products must be fully tested and verified, and do not bring immature products to market. In the choice of suppliers, try to choose honest and reliable suppliers, and choose mature products, try to avoid becoming a supplier's test field. In logistics, for electronic products, we try to control logistics risks through insurance and factory shipment exemption. In the control of the capital chain, reasonable cash flow should be maintained to avoid the risk of collection of accounts receivable as much as possible. In the control of risk, we should also make choices, calmly think, analyze reasonably, and finally make reasonable choices. 5. Talent strategy The key to success or failure of a company depends on the ability and enthusiasm of the company's talents. In a reasonable human resources framework, at least do the following things: First, the core talent reserve, key positions, especially core R&D and management, sales personnel, must have sufficient reserves, and must avoid product quality risks caused by personnel adjustments. Increased problems occur. In the control of production process, it is worthwhile to adopt skilled workers and adopt appropriate salary design for them. The second is to maintain a certain human gradient. All the top talents are hired, and the quality and efficiency of the products may be improved. However, the serious salary burden and the reasonable promotion space for employees are also problems that the company has to face. It is imperative to adopt a reasonable gradient manpower design. The third is the incentive system. Fully mobilizing employee motivation is the most effective way to increase efficiency. Designing reasonable, continuous and effective incentives and ensuring that they are in place, so that every employee can work fully and actively, can bring enough power to the company. 6. Capital strategy The LED industry has already taken the lead in the capital market. However, traditional LED companies are processing enterprises, many of which are even family-owned enterprises, which do not have a correct understanding or late understanding of capital use. A medium-sized LED enterprise will face the problem of bottlenecks in development sooner or later. The more effective way to solve the problem is to re-expand capital investment and scale, and further produce scale effect. At present, the output of Shenzhen LED enterprises is mainly concentrated in the fields of LED display, and the competition is fierce and the breakthrough is difficult. After obtaining sufficient capital support, enterprises should increase R&D investment, compete for relevant talents, focus on the most promising LED lighting industry in the future, and strive to become a leading enterprise in the field of LED lighting. It is an ideal medium-sized LED enterprise in Shenzhen. Development ideas. The LED industry is an industry with great potential in the coming decades, which is bound to generate huge business opportunities. This is why a large number of companies are pouring into this industry. As a bystander, the author made a brief analysis of the industry and hopes to provide some reference for relevant personnel engaged in this industry. 