The Update Decision Study Of High-Technology Product

High-technology product is the innovational product with high value-added, and for the purpose of business, using high -technology or high-technology means .Just like the companies of traditional products, the companies of high-technology products must scientifically make decisions about time and price to gain biggest earnings. But compared with tradition products, high-technology products have some characteristics, such as; complete with a down alternative and the price of the old and the new have bigger difference. So it is very important for high-technology Company to make a strategic decision about time and price to update high-technology. Especially nowadays, with the rapid development of science and technology, increasingly fierce competition in the market of high-technology, the speed of innovating high- technology is more quickly and the life cycle is shorter, most of high-technology product have shown the characteristic of perishable and updating time account for a large proportion of their life cycle, so updating product scientifically will be the direct source of profit for the company. Some scholar even consider the updating decision for the high-technology is the forth source of profit.This paper first using game theory and inventory control approach to analyze the decision about timing that high-technology companies in a monopoly market and a competitive market make to update new product. And get the conclusion that in a monopoly market, if company has limited production capacity, high-technology companies' best choice is not updating new product, while if company has non-limited capacity, companies' best decision is updating new product .In a competitive market, companies will update new product, and make decision according with their opponents.Next, assume that in a monopoly market, the high-technology product company don't update new product, while in a competitive market, companies will update new product, based on customer's surplus value is biggest, and some time to learn the product, analyze the factor that impact demand, pricing and company's earnings in monopoly and competitive market .The conclusion show that time, function and etc. impact the price ,but in a competitive market ,companies must make decision accord with their opponent .The conclusion also explain why high-technology companies advertise their new product before they are on sale.Last, make the conclusion of this paper and direct the future research.