Birth of the VCR Industry

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Birth of the VCR Industry
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Agenda

• VCR
• A breakthrough
• A linear innovation
• Targeted Markets
• Growth and development of the VCR (A firms
  perspective)
• The winners
• Sony
• Matsushita
• JVC
• Strategy of a winner
• Other innovations

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VCR- A breakthrough?

• Led to the birth and growth of many complimentary
  product industries
• Video Rentals
• Component manufacturers
• Content developers
• Ability to record audio and video- available for
  the first time to the household consumer.
• Amazing flexibility in deciding when to watch and
  what to watch.
• Led to the development of video tape player by
  many companies.
• Led to the standardization of video tape storage
  media.
• Led to growth and innovation in other components
  of VCR system.

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VCR A linear innovation?
VCR - 4 generations in 2 decades of radical and
incremental innovation
Mid-80s Demand gt 30 M units p.a.
Basic Research
Applied Research
Developement
Production
1964 First consumer VCR launched by SONY
1954 Sawazaki invents Helical Scanner for
Toshiba
1976 VHS vs. Betamax battle begins
1956 First commercial video recorder developed by
Ampex
1964-1974 Slew of unsuccessful launches by
different companies
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Targeted Markets
Commercial -- Broadcasters
Industrial -- CCTV users
Consumer -- Households
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1950
1970
1980
1985
1960
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Strategy for a winner

• Close association between design and
  manufacturing decisions.
• Full support from the top management.
• Strategic clarity and consistency
• Offering aimed at the largest consumer segment
  (Betting on the winner).
• Constantly upgraded technology based on consumer
  feedback and market response.

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Other Innovations