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Posted on April 15th, 2014, by


Light Emitting Diodes have been the issue of much conversation as humans start to hear of the economic and environmental advantages associated with new types of lighting. LEDs have made a long pathway from once being utilized in tiny electronic gadgets, to now being utilized to develop the extraordinary effects at concerts or events. There are lots of half truths concerning the LEDs in the market place. This paper will try to clarify the terminology and advantages of LEDs, determine why LEDs are declining in popularity, make the recommendations for actions to address the product’s reducing appeal to consumers, determine the finest country to market LEDs and, finally, discuss the positioning ideas for this product in its debut in the new state.

Light Emitting Diodes

Today, the international market for LEDs may be divided down into five major categories: mobile gadgets, general illumination, display backlighting, signaling and signage, and automotive. LEDs for the illumination applications in 2010 accounted for largest share (35.0%) of entire shipments, followed by mobile gadgets (29.9%), and signage and signaling applications (18.6%). General illumination is, in fact, the major market for LEDs, with shipments of approximately $5 billion in 2010 (Myer & Goettel, 2010).

Obsolescent Product

The LED devises are slowly declining in popularity. This is caused by several reasons. In spite of certain advantages of LEDs, such as long period of work, absence of hazardous materials, less heat during usage and less electricity use, there are reasons why LEDs will never dominate in the marker and will be substituted by other goods (Myer & Goettel, 2010).

First of all, the average pricing. LEDs are quite expensive, with bulbs averaging from $30 to $50. At the same time there are usual bulbs, which are sold at $10 price level. The goods at high type of pricing level will naturally capture more market share if the client is satisfied with the quality. However, most humans in the globe nowadays do not have access to those sorts of prices for Light Emitting Diode lamps in the local stores or supermarkets, if they even have any Light Emitting Diode lamps in the local store at all. Essentially, at the present time, LEDs are not broadly sold, making it harder to discover replacements (Myer & Goettel, 2010).

Furthermore, LEDs decline in the popularity due to the emergence of OLED technology. Due to the demand for lower power use, lessened material use, and simplicity, OLED demand will raise in the coming years. OLED TV market carries on evolving technologically and benefit from rising demands for energy efficiency from clients.

Mobile phones estimate for more than 82% of the entire OLED display market. With the success of cell phones, the demand for these displays for the mobile applications is expected to augment. Additionally, the OLED market is projected to enjoy the strong demand for TVs. With the raising partnership within the total supply chain of OLED market, the market is expected to observe steady boost in attractive solutions. In general, OLED TV market is forecasted to obtain revenue of nearly $30 billion by 2017.

Recommendations for Possible Action

Under the policy of separate production the company commits to phasing out the previous variation of goods subsequent to the introduction of the novel one. As the degree of product development reflected by the novel product augments, the company lessens its sales of the previous product. For the sufficiently huge development, a company prefers not to sell the old variation at all. This is similar to leap-frogging conduct on the part of clients, where they sacrifice adopting the variation of the product currently accessible in favor of the forthcoming novel variant (Levinthal & Purohit, 1989).

There are two approaches how a company may control the quantity of the old product accessible: buy-backs and joint production (Levinthal & Purohit, 1989). With the joint production/buy-back strategy, regardless of the level of improvement in novel product, the organization at all times sells the old product in the certain period. Joint production of the old and new goods seems attractive as the organization may exploit the residual demand for the old goods in the second-period of sales. Nevertheless, as clients expect the resulting decline in the cost of the previous product, the company is better off if it can commit to phasing out production of the old product in the second period of sales. The second means of controlling quantity of the old product accessible in period two is through buy-backs. Buy-backs enable the organization to improve the degree of sales of the novel variation without having to sacrifice revenues in the initial period of sales. The buy-back policy in a type of trade-ins is usually utilized by companies, as trade-ins encourage client migration to higher items in product line. The buy-back policy is gainful just in case when the level of improvement in the novel product is impressive as this results in the high cost of cannibalization and the comparatively low buy-back price (Levinthal & Purohit, 1989).

Considering the administration’s participation, one more method of solving the issue is to place administrative requirements on how long dissimilar LED gadgets are supposed to last and offer tax breaks for individuals, who may provide proof they have recycled particular electronic devices appropriately. Additionally, if humans know how to do some things they will, in fact, learn how to recycle the devices. Something like drug commercials that open human’ eyes to drug usage have to be promoted. This type of tactic may demonstrate individuals that their electronic consumption is affecting humans in a negative way. People have to acknowledge the trouble before they may actually pursue a resolution, so opening humans’ eyes is the initial step to stopping this trouble. Naturally, many things may be done, but if there is no current need then nothing will ever alter (Levinthal & Purohit, 1989).

Lastly, it is crucial to address the impact of uncertainty with clients having merely some probabilistic beliefs concerning possible introduction of the novel product. Companies usually obtain higher profits if it informs clients concerning the forthcoming products. Once the company does not inform clients about a forthcoming product, the sales strategy in the initial period of sales is affected, selling too much of old product once the novel product is successfully evolved and too little when the product evolvement effort is unsuccessful (Van Alstyne & Logan, 2007).

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