Author: Kong, Tak Chuen Titus
Title: A management study of the development and marketing of an innovation : NICAM decoder
Degree: M.B.A.
Year: 1993
Subject: Television -- Transmitters and transmission
Decoders (Electronics)
Television -- Equipment and supplies
Hong Kong Polytechnic -- Dissertations
Department: Department of Management
Pages: iv, 79 leaves : ill. ; 30 cm
Language: English
Abstract: It has been 25 years since Hong Kong's first terrestrial TV operator, the Hong Kong Television Broadcasting Limited began operation. The company and its competitors are now able to broadcast using the Nicam digital sound system. However, since the introduction of Nicam in July 1991, there appears to have been no significant growth in its use and this raises the question of its future in both the broadcasting and manufacturing industries. In early 1992, one of Hong Kong's leading electronics manufacturers, Gold Peak industries Limited decided that it should look more critically at the viability of manufacturing stand alone Nicam decoders in Hong Kong. The market for this product was slow and showing no real signs of taking off. This was the initial prompt for this project - to examine the market potential for the stand alone Nicam decoder. However, it rapidly became apparent that this would involve far more than a simple marketing exercise. The television broadcasting industry is undergoing a period of rapid change and the established terrestrial operators (TVB and ATV) are facing a radically different environment with competition from satellite broadcasters (notably the Hong Kong based Star TV) and a subscription cable operator (Wharf Cable TV). Consequently, the project developed into a detailed analysis of industry development, examining trends in government policy and the implications of this for competition in the industry. This analysis draws heavily on Porter's model of competitive forces together with Kolter's framework of leadership marketing strategy and McCarthy's Four Ps framework. The final outcome of the industry analysis is the development of responsive strategies that should be considered by firms in the industry and especially focusing on the present market leader, TVB. Finally, the role of the Nicam stand alone decoder has been re-evaluated in the light of its role in such strategies. The general conclusion drawn is that while Nicam as a technology has a role to play, this will be done by its incorporation in VCRs and receivers, and consequently there appears at this stage to be no real market prospects for the stand alone decoder.

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