Zenith-case summary

Essay by kevinxie March 2004

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Objective: analyze the case offered and answer the following questions.

Background: Zenith, a well-known electronics corporation in North America market, was facing options regarding high definition television (HDTV), a new technology that offer consumers higher resolution (i.e., sharper pictures) and superior digital stereo sound. The company had to forecast the marketing perspective and deicide what ways could be used to assess consumer preferences for the new product.

1. What factors will determine the success of HDTV?

As the next generation of TV technology, no doubt, HDTV would achieve technical mature in the near future. But is there also a promising market in the near future? What are the determinants of successful commercialization of HDTV? The following analyses may answer these questions:

Market demand: with increasing competition, TV manufacture industry has been experiencing very low profit margin for a long period. The development or profitability of a new product has to be based on a market demand with certain amount.

So, market demand forecasting has to be the first consideration for the new product.

The availability of quality HDTV programming: an important factor that may stimulate taking off of HDTV. Unlike other new TV sets, the development of HDTV, in a large extent, depends on the availability of quality HDTV programming with which consumers can enjoy the benefits from watching HDTV. The availability of a variety of HDTV programs would become a main concern after the setup of the three types of standards. Actually, the development of HDTV programs interacts with the development of HDTV.

Consumer's preferences: another factor regarding the development of HDTV. The target customer segment of HDTV should be performance/features buyers who may very care about the performance, features and styles of the new product, such as picture quality, shape, form, and so on. Identifying their preferences would...