京东方：成为液晶面板龙头之后呢

In the high-tech area, Chinese companies stand little chance of growing into leading manufacturers in terms of components. This case describes BOE’s rise from to the world's largest LCD panel company, and its choices for future growth. Established in the 1960s, BOE was once the largest electronic tube manufacturer in Asia, yet due to its technical obsolescence, it gradually regressed into a huge loss-maker. After restructuring, the company's management entered the LCD panel industry with cash flow partly provided by joint venture partner and partly generated in its listing. At that time, liquid crystal technology, after a period of growth, began replacing traditional CRT technology in certain fields. The acquisition of HYDIS, a subsidiary of the Hyundai Group, provided BOE with facilities, technology and talents for LCD panel production. Based on this, BOE began to build LCD panel production lines independently in China and seized the transformational opportunity in the industry to actively invest in advanced production lines and expand its production capacity, gradually surpassing its counterparts in Japan, South Korea and Taiwan. In 2019, BOE's LCD panel shipments ranked first in the world, dominating screen usage in notebook computers, PC monitors and flat-screen TVs. During its growth as a component manufacturer, it faced strategic pressure from its downstream clients to prevent it from becoming a market hegemon. This has thus limited its space for development. What is the reason behind BOE’s rise? After becoming a leader in the LCD field, which direction should the company follow next? What obstacles will it face?