An Influence of Potentiality and Constraint of the Physical Principle Involved in Product Architecture on Competitive Strategy:

A Case Study on the Competition Between LCD and PDP in the Flat‑Panel TV Market

Abstract

This study elucidates the influence of the potentiality and constraint of the physical principle involved in product architecture on R&D strategy and market competition, by using the competition between the liquid crystal display (LCD) and the plasma display panel (PDP) in the flat-panel TV market as an example. Our results demonstrate that the potentiality and constraint are important factors which determined the type of product architecture and significantly impacted the R&D strategy and the market competition. It is clarified that the characteristics of the principle are significant factors in determining market competition in the long run, while their impacts are not as significant in the short term.