The Evolutionary Dynamics of Write-once Optical Disk Industry in Taiwan
Date Issued
2006
Date
2006
Author(s)
Kuo, Lai-Piao
DOI
zh-TW
Abstract
THESIS ABSTRACT
GRADUATE INSTITUTE OF INTERNATIONAL BUSINESS
NATIONAL TAIWAN UNIVERSITY
Name: Lai-Piao Kuo Month / Year: January 2006
Advisor: Dr. Ji-Ren Lee
The Evolutionary Dynamics of Write-once Optical Disk
Industry in Taiwan
Based on rapid capacity expansion and excellent manufacturing efficiency, Taiwanese optical storage disk producers have claimed a leading position in the worldwide optical disk storage market. However, even though the demand is still going up, the market becomes over-supply and major suppliers all suffered from price competition. Given high royalty fee, major players encounter serious business loses.
Taking this industry context into research, the purpose of this study is to explore the development and evolutionary dynamics of the write-once optical disk (CD-R、DVDR) industry in Taiwan. By so doing, this study attempts to analyze if there is learning effect among major players along the technological changes and competitive scenario.
Our research found that from CD-R to DVDR there is significant learning effect between different generations of product and technology development. While the storage capacity of DVD is seven times more than that of CD, the product development cycles of CD and DVD are 16 to 3 years, respectively. Moreover, it took 12 years for CD-R to reach its maximum speed (i.e., 52X), while DVDR took only 7 years to reach its maximum level (i.e., 16X).
Next, based on historical data, we established industry life cycles for CD-R and DVDR, respectively. Since both products employee almost the same manufacturing processes and are functionally substitute, there is a great extent of similarity in industry structure. Both industries have low entry barrier; low concentration; and high fixed cost structure. Therefore, major players exercised scale-driven strategy and price-based competition in both markets, which in turn led to deteriorated performance. There is apparently no inter-firm, inter-industry learning among players. Finally, our research offered a systematic picture of industry evolution of write-once optical storage industries, upon which implications of competition and suggestions for future research are discussed.
Subjects
僅寫一次型光碟產業
產業動態
產業生命週期
Write-once Optical Disk
Industry Structure
Industry Life Cycle
CD-R
DVD-R
DVD+R
Type
other
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