EAD Company Product Development Strategy

In the past decade, The digital TV set-top box industry has been rapid development withthe Chinese government to promote digital TV industry development, EAD company as thesupplier of the digital TV set-top box, sales has been a significant rise also. But in the last twoyears, with the digital TV set-top box market saturation, the enterprises within the industrysales decline in stride.What’s more,the TV set-top boxes as an intermediate product of thetransition from analog TV to digital TV, with the full input and output the digital signal inTV,will gradually withdraw from the market. EAD company’s performance has beensaturated with the set-top box market to gradually decline these2years.Even more serious isthat EAD company currently only the digital TV set-top box tuner, if EAD company has notany changes, then the company will be withdraw from the market with the set-top box.EAD company has more than10years experience in the digital television industry, andhas been at the forefront of technology with industry competitors.EAD company has beenabundant customer resources.The digital television industry is experiencing a second wave ofupgrades revolution, there are many opportunities and businesses, EAD must consider how touse its advantages to develop new products to meet the new needs of its existingmarkets,which involves the product development strategy involves mentioned by AnsoffMatrix.Author will use modern enterprise strategic management theory and analysis tools,combining with the actual situation of research methods, to analyze EAD company’s internaland external environment, the competitive environment and their own professional strengthsand weaknesses deeply.Author will applied to the PEST model, Porter’s five forces model,SWOT analysis tools during the analysis. The goals of the article is to formulate the EADcompany’s product development strategy, the main work as below.Author world summarized the threats and opportunities of the EAD company by itsexternal environment analysis, the threat is that the decline in performance of existingproducts, faced with the threat out of the market, while the opportunity is that digitaltelevision industry is facing the second industrial revolution upgrade, integrated digital TV isthe development trend of the industry.Another hand author world summarize the advantagesand disadvantages of the EAD company by its internal environment analysis. EADcompany’s advantage is that the digital television industry has a wealth of experience andcustomer resources, and the disadvantage is that as the existing product of the EAD company is too professional, there are not many types new product can be developed by using EADcompany’s own resources. Finally,base on the analysis of EAD company’s external andinternal environment, EAD company will develop tuner for integrated digital TV to adapt tothe new demands of existing markets, and formulate methods of product development from R&D, Production and Marketing, the final implementation of the strategy to developsafeguards, so as to formulate the company’s products EAD strategy development.