Mitsubishi Case Study

slipping to slightly under 70 percent because of the presence of Mitsubishi as new entrants toward the end of the year and was estimated to gain about 12 percent of the market share.

Capital required in this industry will be a major obstacle for the company to enter this business, particularly for start-up companies. The cost of raw material, such as LED, labor cost, and definitely cost on R&D would be an overwhelming cost for small companies. Furthermore, in this industry, economies of scale of the larger existing companies in this industry gave them cost advantage over new entrants companies. Product differentiation, such as high quality products and reliability customer support from the well-known existing companies would also be a barrier

For example, new entrants such as Dell, IBM, Cisco, Samsung and Oracle were driving a new trend for the one-stop shop, where they provided end-to-end solution, included assembly, installation, and support for content management. Thus, the buyers had a larger opportunity to choose the desired vendor.

In this case, price was becoming one of the major differentiation between competitors. Meanwhile, several companies compete on lower price basis with lower quality and lower price. Thus, the choices was on the buyers’ hand, to decide which product that they would choose by comparing the price and quality factors. Furthermore, large projects often involved bidding processes, such as projects for public arenas or civic centers. This bidding processed seek for the lowest price provider. In addition, the presence of consultant at buyer side, would increase the pressure for lower prices.

Therefore, the bargaining power of buyers were high and it was a threat for companies’ revenues and

• The level of technology development and industry spending on R&D that enabled the creation of new products with the application of the latest technology.

• In this B2B industry, in order to compete in business, consumers wanted to provide the best services and offered unique experiences for the end users, thus, the demand of this digital signage and live entertainment (including sports applications) was increased. They used these products to conduct marketing activities as well as gave entertaining for end user.

• Supply chain forces, the shortage of raw materials because of the limited suppliers and an increasing demand. It led to the necessity to build a strong relationship with suppliers in order to maintain a continuity of raw materials, for example make a purchase agreement to guarantee the availability of raw material in certain price over the length of the contract.

• Economic forces would obviously affected this industry. The demand definitely decreased during the recession period and tended to increase in a better economic