Abstract
With the rapid advancement of digital broadcasting technology, large-sized outdoor advertising is developing towards moving images, and large-sized public information displays are expected to become the next killer application for large-sized display panels. As display vendors have drastically reduced prices in order to expand their markets, 40-inch displays for in-store applications are expected to be the fastest growing market segment. LCD and PDP are the two major technologies being used. However, the public information display market is a B2B market, which is distinct from the B2C market. Therefore, the industry has complex and diverse supply chains and business models. This report will analyze the worldwide large-sized public information display market, focusing on industry structure, product specifications, supply chains, and business models.
Marketing Strategy Customized to Specific Market Needs
Large-sized public information displays have a variety of applications, and market segmentation is expected to affect the competitiveness, opportunities, and threats felt by vendors. Entry and exit barriers, core business, marketing strategy, and profit model are also contingent on different market segments. When marketing resources are limited, companies are advised to cautiously choose their target market based on their internal resources.
The following are examples of processes for corporate decision-making.
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Table 3 |
Marketing Plan Simulation |
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Target Market |
Entertainment Venue |
Large Transportation Company |
Outdoor Advertising |
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Market Competitiveness |
High |
Medium |
High |
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Demand Growth |
High |
Medium |
High |
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Project Size |
Small |
Medium |
Large |
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Entry Barriers |
None |
Closed markets, channels controlled by specific companies |
Systems management, customer service, content provision |
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Key Competence |
Low cost and installation |
Quality and maintenance |
Financial solutions and maintenance |
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Product Strategy |
standard quality |
High reliability, high quality |
high image quality |
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Marketing Strategy |
Lower initial customer cost, win market share, gain experience |
Partner with distribution agency |
Flexible pricing strategy, comprehensive customer service, extensive maintenance network |
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Note: The above indicators (high, medium, low) are not indications of actual market conditions;
companies must choose target markets based on their own status and competitive
advantages. This table is for reference only.
Source: MIC, November 2007 |
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Strategic Partnerships Reduce Entry Barriers
Each market segment has different core needs, and companies are advised to partner with different members of the value chain based on their own internal resources, thus accelerating their entry into the market. These partnerships also decrease the risk of failure.
Customization, Flexibility Key to Success
At present, industry standards have not yet been formulated and the client base has not yet made for an economy of scale. Therefore, products, service workflow, and business models need to be highly flexible and adaptable to the needs of different customers, and particular emphasis needs to be placed on cost structure and the cost of after-sales services. Product design can take advantage of component modularization, with easily replaceable modules that can greatly improve production efficiency. Services can be conducted on a model featuring high floating cost and low fixed cost, with shipping, assembly and testing, and maintenance outsourced. Companies can gradually develop their competence in accordance with the expansion of operations and markets. Profits can originate not only from the sale of hardware and maintenance services but from the sale of peripheral products, product placement, and consulting. Costs of after-sales maintenance and services must be determined by customer and market demands, and a flexible approach should be taken towards product planning, pricing, service workflow, and strategic partnerships.
Appendix
Research Scope
This report looks at the current development of the market for public information displays measuring 30 inches and larger. Included in this report are analyses of worldwide market scale of LCD and PDP public information display; worldwide public information display industry structure and characteristics; as well as specifications, supply chain, and business models specific to a market featuring distinct segmentation.
Glossary of Terms
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B2B |
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Business-to-Business |
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B2C |
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Business-to-Customer |
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CRT |
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Cathode Ray Tube |
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DLP RPTV |
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Digital Light Processing Rear-Projection Television |
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DVD |
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Flat-Panel Display |
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HD |
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High Definition |
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LAN |
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Local Area Network |
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LCD |
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Liquid Crystal Display |
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LED |
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Light-Emitting Diode |
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PDP |
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Plasma Display Panel |
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QCIF |
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Quarter Common Intermediate Format |
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QVGA |
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Quarter Video Graphics Array |
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RGB |
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Red, Green, Blue |
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SD |
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Secure Digital |
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SXGA |
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Super Extended Graphics Array |
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TFT |
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Thin-Film Transistor |
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VCD |
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Video Compact Disc |
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VGA |
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Video Graphics Array |
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WXGA |
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Wide Extended Graphics Array |
List of Companies
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42Media |
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C2 Networks |
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Chilin |
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奇菱 |
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Delta |
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翰立 |
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Dynamic |
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Everpark |
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Fujitsu |
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Hitachi |
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IDS Menus |
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InterSystems |
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KDD |
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LG |
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Mitsubishi |
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NEC |
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Panasonic |
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Philips |
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Samsung |
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Sharp |
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Telecine Multimedia |
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View Technology |
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鉅多 |
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Yu Ming Huei |
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嘉笙 |