A dynamic model of technological innovation in 3D TV industry: Case of LG electronics

Abstract

This paper focuses on the existing matured PDP/LCD TV markets and the growing 3DTV market. In recent five years, LG Electronics(LGE) has faced with limitations to keep its leading position continuously in the matured PDP/LCD TV markets, and been chased right under its nose by technology alliances between Japan and Taiwan, the establishment of integrated companies, and the development of new technology in its competitors. Accordingly, this paper has its own research objective to find strategic implications to retake its previous position once known as a renowned TV manufacturer by getting product leadership back through the 3DTV technology innovation and the development of new products. In this paper, we reinterpret success factors for 3DTVs with a dynamic model of technological innovation by applying it to product and process innovations of 3DTVs, and suggest marketing strategies to reduce gaps between technological innovation on the high-tech life cycle of technology and market innovation. The performance and technological innovation of products are important to survive in the high-tech industry. However, convenience, accessibility, and emotional aspect are more important three factors from the consumer's properties to maximize the consumer's utility, which should be considered in the stage of product development. The maximized consumer's utility enables LGE to hold the product leadership consistently by reducing the chasm between the early adapter and the early majority. © 2014 Springer-Verlag.