The Relationship between Product Innovation and Market Position—The case of Taiwan’s Mobile Phone Industry.

• Main Authors: Li-Wei Su, 蘇立暐
• Other Authors: Chien-Tzu Tsai
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/86682159312750145504

碩士 === 逢甲大學 === 企業管理所 === 92 === Most of enterprises carry out product nnovation, and they hope to bring new profits and market for themselves, hoping to increase new customers, hoping to make the company subsist and grow up. So in the industry, while a company makes the new product enter the market, the other ones also make the similar product enter the market to answer the market’s need. However, they do these things in order to raise a market share. And further, it can strengthen their market position. Generally speaking, product innovation is proceeding as planned. by different companies in different situation. Therefore, the key subject of the study is “The Relationship between Product Innovation and Market Position”. In the study, we will use Chandy & Tellis’ product innovation types to distinguish the degree of innovation in the six products of the Mobile Phone industry. And we will give “ market share” , “market position”, “innovation strategy” a definition and then bring a research framework. In the framework, it has two views: one is “external environment”, and the other one is “internal environment”. After analyzing the development and progress of the products, we search out fifteen discoveries and get five conclusions. The results are as follows: 1.A market leader has a larger power to carry out product innovation than a market follower or a niche competitor, but a market follower or a niche competitor has the higher opportunity to carry out “Incremental innovation” and “market breakthrough innovation”. 2.For “Incremental innovation”, companies use the least time to launch the new products in order to fit market change. For “Market breakthrough innovation”, “good market responses” is the best time to bring the new products to the market. For “Technological breakthrough innovation”, the stability after technology testing is the key time to bring the new products to the market. 3.“Incremental innovation” and “Market breakthrough innovation” are easy to popularize than “Technological breakthrough innovation”. And “Technological breakthrough innovation” must reach the popularization standard, and it also have to wait for consumers’ acceptability. 4.A market leader has a tacit understanding with supplier. And they usually support each other. And if they cooperate to get the work done, product innovation will be smooth going. A market follower or a market imitator is not easy to get support from suppliers. 5.A market follower doing anything about product innovation will be the direct cause of market change, because the market leader and the niche competitor must take action.