Considerations for commoditization factors in flat-screen TV industry

Price declining factors of flat-screen TV with a focus on LCD TV are analyzed from two different aspects in terms of commoditization: Aspect of company´s product development such as adoption ratio of self-manufactured panels and offshore production ratio and aspect of LCD panel industry growth. It was confirmed that product development has impact on price decline and that there is a strong relationship between LCD panel production capability and LCD TV price decline. Considering these analysis results, it is believed that modularization and Japanese manufacturers´ offshore production have led to global competition and production volume has increased due to active investment on LCD industry, which resulted in price competition and commoditization. In light of all this, there are some implications for Japanese manufacturers: First one is whether or not products can continually provide differentiated values and second is to implement adequate development strategies to internally retain product collaboration process technology.