How smart does a firm need to be to win in the smart TV industry?

Toshiba announced that it would channel its resources towards manufacturing large screen ultra-high-definition (UHD) 4k LCD TV as the company predicts a growth in demand. However, how would Toshiba fare if they were to focus on making UHD TVs?

The table below lists the various companies selling UHD TV.

Image taken from: http://www.gadgetreview.com/2013/08/4k-tv-price-comparison.html

According to the table, Toshiba released it’s UHD TV after Samsung and Sony. It would also have a hard time finding an unoccupied position in this product category,as Seiki had already produced smaller size UHD TVs and Sony had likewise released its middle sized 55 and 65 inch UHD TVs prior to Toshiba. This makes it hard for Toshiba to establish itself as a leader in UHD TV industry.

Although the pricing of Toshiba’s 84 inch UHD TV is relatively cheaper, the product remains expensive compared to high-definition TVs. This might prompt price cuts from companies to make UHD TVs more affordable, causing Toshiba to lose its competitive edge. Besides steep prices, a UHD TV wouldn’t be fully utilized as most programs are broadcast in 1080p or 720p displays. Therefore my analysis suggests that Toshiba would not fare well if they were to focus on making UHD TVs.

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