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MarketingProduct Lifecycle and Blu-Ray

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SONY Corporation

Akio Morita & Masaru Ibuka Smart and presentable young men (sony)

1946 Japan

Headquarters in Tokyo, Minato Revenue exceeding $ 78.88 billion

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Toshiba Corporation

Hisashige Tanaka, Ichisule Fujioka & ShoichiMiyoshi

Fundation, Changes

1939 Japan

Headquarters in Tokyo, Minato

Revenue $ 72.0832 Mio

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VHS VCR

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Comparation1976

VCR

First on the market

2h record

Better Quality

In `88 disapeared

VHS

4h record

Active market placment

Cheaper

still available

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Both

Technology DVD Base

Laser of the same wave length

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Differentiation

Blu-Ray

Sony, Pioneer, Philips,

Panasonic

First on the market More layers & more

capacity

High price

7 contracts

HD DVD

Toshiba, Sanyo,

Kenwood, Intel

Less layers Less capacity

Lower price

3 contacts

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Will the differences matter?

Despite being physically similar, Blu-ray discshave the highest quality.

While both formats produce high quality, can

one really tell the difference?

The methods of encoding are different,

therefore:

Blu-Ray discs canhold max 200GB of data

(SL:25Gb, DL: 50Gb)HD DVD discs canhold max 90GB of data

(SL:15Gb, DL:30Gb)

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Capacity will always be our #1 concern.

While the VHS/Beta war was all about tapecapacity, many critics believe that this is not an

issue here.

Both can hold a feature length movie no

problem, but people want bonus features.

Blu-ray believes having bonus features on onedisc with the film is a selling feature compared

to the usual 2+ HD DVDs (HDi and BD-J)

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Introduction of the 2 formats

In April 1996, Toshiba introduced the firstHDDVD player at $499 and $799.

In June 1996, Pioneer introduced the first Blu-

ray player at $1800.

Toshibas introductory strategy was to price the

player lower than the production costs with theassumption that the market would be populated

with their product and become recognized.

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Product Lifecycle

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Introduction of the 2 formats

Toshiba had ignored one important element:You have to build awareness before you can

assume price isnt an important or overriding

factor.

With Pioneer having targeted consumers who

focused on quality and performance, they

introduced their player much more expensive

but closer to theater quality then the HD DVD

player from Toshiba.

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Product Lifecycle

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Movie Studios

Blu-ray has signed 7 studios while HD DVD only3.

Some companies, like Warner Bros., will release

in both formats.

Will image quality, capacity, price and content

availability be deciding factors as they werewith the Beta/VHS war?

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Video Game Consoles

With PS3s being shipped with a Blu-Ray driveand XBOX 360s with a HD DVD drive, the

competition is fierce.

The PS3 plays games with Blu-Ray technology

and can even play normal DVD movies. (No HD

DVD as its the main competition) The XBOX

360 plays games with HD DVD technology.

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The format war: HD DVD vs. Blu-Ray

There are 2 otherassumptions about thisformat war

Both formats could succeed

or

Both formats might fail

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These two technologies can adopt each other Dual format players can reduce the revelance of

format labels

Adoption of game platforms are not slowed in 90ies

Assumption 1

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Assumption 2

End of the century-long era of physical media

Consumers are moving beyond shiny discs

Television programming is competing with homevideo market

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Nowadays and Future

Tv channels

CableTV provides channels just for movies

Online (movie portals) web movies

Direct movies on portable devices

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The actual lifecycle for VHS is contrasted withthe potential lifecycle for Blu-Ray

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Bibliography

http://www.lgblog.de/wp-content/uploads/2008/02/wal-mart_blu-ray.jpg

http://www.smecc.org/video/wpe4D.gif

http://concount.files.wordpress.com/2008/11/bluray-vs-hddvd.jpg

http://www.blurtit.com/var/question/q/q7/q72/q724/q7243/q724306_374408_product-life-

cycle.png

www.blu-ray.com

www.wikipedia.com/blu-ray