4.1 Introduction

With the development of world economy, energy-saving and environment-protecting have become a tendency in the world. More and more countries become understanding the importance of the LED products on the saving energy and protecting environment and decide to substitute LED products to the traditional products to protect them from the rise of energy price, LED products can widely used on many areas such as lights, screen, portable products  . The global demand was 5.8 billion dollar in 2005, it was up to 10.6 billion dollar in 2011, and the average growth rate was more than 10.2% per year. Under this situation, the companies with in line with LED products were booming in every corner all over world in the last 10 years. Most developed countries input more on the R&D products, America, Japan, South Korean and Europe have made out LED pans to develop their LED industry. With the mature of LED products, this industry is encountered with more and more questions, especially in china (the largest manufacturer and export of the LED products) which is greatly affected by the world gloomy economic environment and external environment, so that this industry should analyze and evaluate the business environment and adjust their strategy to the changed environment. To find out the right business process, this paper will analyze the internal and external environment of a case of a famous Chinese LED company named Neo-Neon.

4.2. Discuss the LED Company

4.2.1 Brief introduction of the LED Company

Neo-Neon, as famous LED manufacturer in china, was established in 1979 and public in Hong Kong in 2006, specialized in researching and developing, manufacturing and selling lighting products. According to its annual report (2011), 26 branches were established in Hong Kong, Taiwan, Masco, Europe and America with more than 16000 employees. The R&D center has more than 300 advanced engineers and experts, was facilitated with the most advanced LED equipments which can develop hundreds of new LED products with high quality and technology. The R&D center can develop 1 new patent every 2days on average, which can keep its leadership in this area. The products face the world markets and obtain 524 patents in many countries. However, its revenue was only HK dollar 1259 million with 20.6% net profit rate in 2006, and that is 1710 HK dollar in 2010 with only 6.6% net profit rate (2011 Annual Report ). The Neo-Neo group is facing the slack time. It is urgent for the company to analyze the environment and then reengineer the business process.