The Analysis of Price Declines Factors – The Digital Still Camera Industry Case -
Commoditization refers to the phenomenon where prices are declining so rapidly that market competitors are unable to earn a reasonable profit even though the market is expanding and there is strong demand. This sort of commoditization can be observed in many digital device industries, but in this paper, by taking up digital still camera industry, a representative digital product, and analyzing the specifications and prices of approximately 560 models brought to market from 1995 to 2003, we analyze that a rapid decline in price is occurring, and reveal their causes. Our analysis reveals that the modules used in digital camera designs are remarkably uniform, the industry is becoming horizontally specialized, due to new market entrants developing similar platforms made up of components with the same specifications, and price declines are occurring because product specifications between competing companies are becoming homogenous.
Volume (Year): 50 (2006)
Issue (Month): (February)
|Contact details of provider:|| Postal: Rokkodai 2-1, Nada, Kobe 657-8501|
Phone: +81-(0)78 803 7036
Web page: http://www.rieb.kobe-u.ac.jp/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kob:review:feb2006::v:50:p:17-31. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.