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rend. In 2005 and 2006, the rate of assets and liabilities were % and %, the financial cost is million Yuan and million Yuan respectively. In the end of 2007, the pany’s balance has reached %. The asset of the pany has bee a negative asset. The advantages of Xoceco Electronics Company:Xoceco Electronic focuses on LCD TV, plasma TV and digital high definition television, highend product innovation, R amp。amp。 D and manufacturing for twenty years. Acpany with the accumulation of management experience and technology in China’s color TV industry over the years, the Xoceco Electronic still have certain advantages, mainly reflected in:1. The technology advantages of TVXoceco Electronics has the advantage relative to domestic firms in the field of Digital HD, LCD TV, plasma TV above.2. The upstream supply and financial support from the major shareholder of pany With the reorganization of Xoceco Electronic by Chunghwa Picture Tubes, it creates a domestic color TV enterprises bination with the upstream supply chain for the first time. So Xoceco Electronics has chance to enhance the petitiveness and continue to bee bigger and stronger to lay a solid foundation. Chunghwa Picture Tubes, which is a listed holding pany, is currently ranked third in Taiwan and the world’s fifth LCD panel plant.3. Xoceco Electronic Company in domestic and international market has established some brand awarenessAfter twenty years of hard work, especially in the digital highdefinition TV, flat panel TVs and other fields, Xoceco Electronic Company not only in the country obtains a higher visibility and recognition in the international munity but also 6played a certain degree of visibility. Xoceco Electronic Company obtained a higherend brand image in the domestic and international market.4. Excellent business managementXoceco Electronic Company is not large in the industry for many years, but has got a big achievement in the innovation and development in business management. Xoceco Electronic Company is a strong learning organization, and a number of advanced management methods will soon be accepted and implemented (Porter, 1996). So after years of improvements and enhancements, the operation and management of Xoceco Electronic pany is in an advanced position.5. The advantages of the Xiamen AirportModern and efficient TV manufacturing industry has a higher demand on logistics, and color TV manufacturers are increasingly demanding the rapid and timely supply of raw materials, and convenience and low cost of large quantities of color TV exports. In the Xiamen, a busy international airport and a excellent deepwater port can provide the conditions above. The disadvantage of Xoceco Electronics:1. The scale of enterprises is small. Xoceco Electronics is a smallscale enterprise in the domestic color TV industry. And smallscale lead to Xoceco Electronics cannot develop its strong points, avoid its weaknesses, and win a favorable position2. The discrete problem of supply of raw materials. As Xiamen is not in the Yangtze River Delta and Pearl River Delta, which is two of the most economically developed regions, and Fujian’s industrial base, especially for the electronics industry base is relatively weaker than coastal areas. These factors make the most of raw materials of Xoceco have to be supplied from the Yangtze River Delta, Pearl