Long-term Strategic Development Application by a Two-stage Expert-based AHP Model for the Internet Plus Era: a Leading TFT-LCD Manufacturer Case

Abstract

ABSTRACT Regarding TFT-LCD industry from globalization to glocalization, manufacturer faces severe challenges and problems, such as how to enhance business model strategy for product value and quality and thus increase customers’ acceptance, how to strengthen customers’ purchase willingness and convenience, and how to reduce the operating cost from localization overview, for considerations of lone-term strategy. These challenges/problems are intensified while business model changes to cope with the rising trend of smart life and e-commerce in the Internet Plus era, resulting in a dramatic turbulence of demand and supply. Due to significant advances in this era, some expert-based methods like variants of AHPto solve real-world problems can improve the industry applications to understand long-term strategic development and assure product resource for different industries. Although the past decade has seen considerable progress in the business strategy development, large mergers and acquisitions (M&A) case analyses have lacked in TFT-LCD industry. Thus, this study proposes a two-stage expert-based AHP model to experience the best practice of a leading TFT-LCD manufacturer to explore issues of strategic development under such circumstances. In the first stage, after the in depth interviews with strategy-makers of the case company, we orderly gained four dimensions: technical innovation, resource integration, customer service, and M&A strategy, and 18 factors for developing the long-term strategy. For the second stage, we used the expert-based AHP model to prioritize the factors and found smart application, innovative capability, customized service, and innovative business value are key strategic factors to create business value and increase competitiveness advantage.