Breaking News
Comments
Newest First | Oldest First | Threaded View
<<   <   Page 2 / 2
telecrooks
User Rank
Rookie
re: Cause of Telegentís spectacular fall: China dunnit
telecrooks   7/18/2011 10:40:42 PM
NO RATINGS
AAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHH !!!

DMcCunney
User Rank
CEO
re: Cause of Telegentís spectacular fall: China dunnit
DMcCunney   7/18/2011 10:25:28 PM
NO RATINGS
What I get from this is that Telegent had a bright initial idea: target a large potential market no one else was even looking at - but failed to think far enough ahead. Being first in the market and establishing a commanding share isn't enough. Once you're in first place, you have to stay there. And if the market you are in is big enough, you will get competition who will do just what you do, only cheaper. In semi-conductor electronics, the nature of any market is to become a commodity market very quickly, where the customers buy on price and the lowest cost producer wins. In addition, your market can change dramatically or even evaporate as technological shifts occur, like the shift from analog to digital TV. What do you do then? . If I'm a company like Telegent, my long-term strategy is likely to be "Identify an unserved market, develop a product to serve it, grow my business to take a commanding lead in that market, and position myself as an attractive acquisition target for a much bigger and better heeled company who sees buying me as the most efficient way of entering a new line of business that complements those they are already in. " . I'm *not* going to assume I can stay independant. I can establish a market, but I won't have the scale and resources to stay the lowest-cost producer when what I make becomes a commodity. I'll need to either be acquired or go belly up because I simply won't be able to compete. . The question for Telegent now is whether they can come up with another bright idea similar to their original one, and repeat what they did before in *creating* a market, then set themselves up to be bought by a big outfit that wants a piece of the market they created.

qerqwe
User Rank
Rookie
re: Cause of Telegentís spectacular fall: China dunnit
qerqwe   7/18/2011 10:21:28 PM
NO RATINGS
IP?? Since the competetion seems world wide, I assume that they could not protect their design.

junko.yoshida
User Rank
Blogger
re: Cause of Telegentís spectacular fall: China dunnit
junko.yoshida   7/18/2011 5:31:47 PM
NO RATINGS
Exactly. And that's probably the reason why Telegent wasn't even looking to move on to another market even two years ago!

old account Frank Eory
User Rank
Rookie
re: Cause of Telegentís spectacular fall: China dunnit
old account Frank Eory   7/18/2011 5:04:38 PM
NO RATINGS
A very interesting case study on competition. Considering that the competitor who drove the price to $0.80 is still making a profit, the margins had to have been staggering on Telegent's chip at $6.00.

junko.yoshida
User Rank
Blogger
re: Cause of Telegentís spectacular fall: China dunnit
junko.yoshida   7/18/2011 3:54:23 PM
NO RATINGS
Hi, resistion. Your points are well taken. But the truth is that China's mobile TV market was one of the biggest growth markets -- especially for analog mobile TV. We suspect that we will run into a situation similar to this, more often than ever before. In other words, there will be no time to test market your products elsewhere -- but you've got to plunge right into the Chinese market directly, because that's where the demand is.

GREAT-Terry
User Rank
CEO
re: Cause of Telegentís spectacular fall: China dunnit
GREAT-Terry   7/18/2011 3:39:41 PM
NO RATINGS
Price went from $6.0 to $0.8 in months is bloody. Just wonder why this company didn't change their strategy and started something "new" 2 years ago. Maybe they have started but not succeeded or not yet mature.

resistion
User Rank
CEO
re: Cause of Telegentís spectacular fall: China dunnit
resistion   7/18/2011 2:43:18 PM
NO RATINGS
Perhaps even more important, one-time innovation not enough, need sustained innovation to combat price effect of competition.

krisi
User Rank
CEO
re: Cause of Telegentís spectacular fall: China dunnit
krisi   7/18/2011 1:51:26 PM
NO RATINGS
thank you Junko, spectacular story!

resistion
User Rank
CEO
re: Cause of Telegentís spectacular fall: China dunnit
resistion   7/18/2011 9:51:49 AM
NO RATINGS
I think they should not have started with China market first, but get a feel in the US, Europe, Japan, or even discuss with Apple. Customers know/distinguish better in those countries.

<<   <   Page 2 / 2


EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Max Maxfield

Feast Your Orbs on My Jiggly Exercise Machine
Max Maxfield
46 comments
Last weekend, I was chatting with my mother on the phone. She's all excited that I'm coming over to visit for a week in November. "I'll be seeing you in only seven weeks," she trilled ...

Glen Chenier

Missing Datasheet Details Can Cause Problems
Glen Chenier
3 comments
It is often said that "the devil is in the details." All too often those details are hidden deep within a datasheet, where you can easily overlook them. When a datasheet reference circuit ...

David Blaza

RadioShack: The End Is Nigh!
David Blaza
120 comments
I'm feeling a little nostalgic today as I read about what looks like the imminent demise of RadioShack, at least as we currently know it. An old ubiquitous cartoon image popped into my ...

Larry Desjardin

Engineers Should Study Finance: 5 Reasons Why
Larry Desjardin
46 comments
I'm a big proponent of engineers learning financial basics. Why? Because engineers are making decisions all the time, in multiple ways. Having a good financial understanding guides these ...

Flash Poll
Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)