Emergence and development of the optical disk industry

Ogawa Koichi

doi:10.14955/amr.050302

<p>The circumstances surrounding the rise of the optical disk industry within the consumer market and culminating in the creation of a huge market within the personal computer industry are analyzed from the perspective of Japanese companies. First, the dynamic transformation of optical disks from an integral to modular product architecture through their use of microprocessors and firmware is explored, followed by the transformation from CD-Audio to CD-ROM, then from the dominant CD-ROM design to the current DVD. Also explored are the circumstances until the birth of the huge OEM market in personal computers. In addition, the fact that the competitive edge of Japanese companies was more due to the influence of dynamic transformations in product architecture than technological strength is covered. Further, how Japanese companies relinquished markets at the time of transformation to modularization, with industrializing countries entering the market and striving to catch up, is discussed. Viewed from the perspective of product market architecture theory, the relationship between Japanese and Korean, Taiwanese, and Chinese companies in the optical disk industry is similar to the that between IBM and PC clone manufacturers in the personal computer industry, and the perspective of the winning formula of Japanese companies is also examined in this paper.</p>

Emergence and development of the optical disk industry

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