We have presented the tangible and feasible business model to help them create the idea of how to penetrate the market and also how to increase the sales of the company. Since their technology is the sensor that must be placed behind the substrate of the mobile phone, tablets, televisions or other materials with display to make the sensitive touch and flexible substrates, in order to penetrate the market from which they must start to develop the market and educate the users who constitute the consumer electronics market and also to study the trends in the flexible substrates market.
Research Objectives
They came up with the idea of developing the technology and marketing their product in the current market where there is only prototype electronic devices with bendable, foldable and forced touch screen. Believing that user requirements must be created by the technology provider, they continue research and development in Toulouse for seven years before deciding to reach the market, but they did not know how and when would be the best time to reach customers. .
LITERATURE REVIEW
Consumer Electronics Market
- Analog and Digital TV
- Telecommunications
- Computing Electronics
- Medical Electronics
- Industrial Electronics
- Aerospace & Defense
The telecom electronics applications sector is expected to be worth US$ 847.6 billion by 2018, representing a net CAGR of 12.8%. With a CAGR of 10%, the global market value of the computer electronics applications sector is expected to be worth USD 436.6 billion by 2018.
Display market
- Key Players: Global Display Market
Increase in demand for flexible screen type-based products and applications, currently used in smartphones and tablets, among others, has been noted. The latest display types include transparent and 3D displays, which are in the development stage and yet to become commercially viable and profitable.
Flexible Electronics Market
- Key Players: Global Flexible Electronics Market
As technologies such as OLED, E-Ink and screen type compromising 3D, flexible and transparent are at the nascent stage, there is a wide range of opportunities for the overall market. The gradual shift from the conventional screen type that includes flat screen type to flexible screens has had a huge impact on the screen market.
Introduction to the Flexible Display Market
- Key Players: Global Flexible Display Market
- Segmentation of the Flexible Display Market .1 By Application
On the other hand, Technavio's market research analysts predict that the global flexible display market will grow. Finally, Occam Research expects the global flexible display market to reach $4.5 billion by 2022 with a CAGR of 105% in the forecast period Data Markets Analysis, 2016) (for detailed explanation of the forecast of this forecast, see Appendix B).
Applications for Flexible Display
Technology for Flexible Displays
- OLED/ AMOLED
The adoption of (AM) OLED displays will be a milestone for (AM) OLED in the display industry.” According to the presenter, LG wants to apply the concepts gained from this mass production experience to the development of plastic (AM)OLED and flexible displays.
Components and Materials for Flexible Displays
- Glass and Flexible Glass .1 Normal Glass
- Key Players: Flexible Glass
Value Proposition and Positioning: “G-Leaf™ ultra-thin glass for use in some of the most talked about next-generation technologies such as OLED and flexible displays. Ultra-thin glass is the ideal material to protect moisture-sensitive OLED elements and maximize their benefits.
Key Take-Away and Insight of Part A
- Overall Electronics market
- Applications
- Technologies
- Materials and components
We can see that market growth increases as the market becomes more specialized and as the market incorporates newer technologies as this is where the greatest opportunity for growth lies. These numbers show that this market is expected to see tremendous growth in the near future, which can lead to interesting sales potential. We believe that this technology will grow significantly in the coming years, both for conventional and flexible displays.
We will have to wait to see if this new technology comes out in the near future, which will slow down the (AM) OLED growth rate. Confidence in the capacity of plastic-based substrates to overcome the challenge of flexibility for both encapsulation and base substrate.
RESEARCH METHODOLOGY
The Five Force Model
FINDINGS AND DATA ANALYSIS
Industry Rivals (Low - Moderate)
- Scope of Study
- The strategic focus
- Industry rivals analysis .1 Peratech
They develop the product together with other electronics manufacturers to integrate their force sensing sensor such as SHARP and other PC manufacturers. In addition, SHARP is owned by Foxconn, which is the Taiwanese manufacturers of electronic devices for Apple Blackberry, and so there is an opportunity for Peratech to increase its production capacity. Referring to Part A, Technology in (AM)OLED, Foxconn (which owns Sharp) has invested the OLED production capacity. Sep.2016 means that Peratech could use their production capacity for the products.
Which Foxxconn (the Taiwanese manufacturers of electronic devices) owns Sharp, so there is possibility to reach its production capacity. Core Competence Deliver the complete sensor offering, Ready to make the mass production due to the production capacity.
Bargaining Power of Suppliers (Moderate)
- Scope of study
- When do suppliers have power?
- Supplier’s bargain power in this industry will be defined through the following parameters
- Consequences of having powerful suppliers
Depending on what power the supplier chooses to exercise, a company may have to reflect this through product prices, product quality and quantity available. A company may have to go out of business or switch to another industry to avoid being dictated to by the whims of a supplier.
Bargaining power of Suppliers per group of suppliers
- Power of Flexible Encapsulation suppliers (High)
- Power of Substrate suppliers (Low) Concentration of suppliers: LOW
- Power of Conductive track suppliers (moderate)
Therefore, we can assume that most of the revenue in Q4 2016 will be from the iPhone 6 and 7. Since there are mainly different manufacturers, the concentration of the suppliers in this industry is low, especially compared to the buyer's competitive environment. Moving from one substrate supplier to another does not involve high costs, as long as the switch to a new substrate producer does not involve changing the conductive material (for the compatibility of electrodes with substrate material) or a change in the concentration of the does not involve substrate material. pressure sensitive ink.
Some of the players in the industry, like Nissha-C3Nano, are already using these conductive inks for their sensors. This may suggest that a good supply of non-ITO may still be quite scarce or the prices are too high as some of the players decide to make it themselves.
Bargaining Power of Buyers (Moderate)
- Types of buyers
- Bargaining power of Buyers (Moderate)
- Choosing the right buyer
- Importance of flexible sensors in flexible electronics industry In value, flexible sensors come second in terms of value within the the flexible
Buyer Concentration: Few phone manufacturers can apply industrial-level force sense technology to their flexible phones. Percentage of Sales: All buyers of the technology in this market represent a major player with high production rates and will occupy a large amount of force sense technology capacity. Undifferentiated products: Force Sense offerings can be imitated by multiple players, but patents can protect the know-how for printing Force Sense technology on flexible substrates, allowing product offerings to be differentiated.
We can select buyers who value product quality and reliability and delivery over price. These will not push costs and prices and instead work to ensure that the product offered is top of the line.
Threat of New Entrants (Low)
Threat of Substitutes (Moderate – High)
- Scope of study
- Threat Level per Substitute
By learning from billions of user journeys through data collection, some players can predict a user's next move and develop so-called "deep linking"; the user taps the link and goes directly to the appropriate section of the application. For example, a three-dimensional gesture may be a fingerprint of a user who touches the front surface of the system and then moves away from the front surface. Upon detecting such three-dimensional user input, the system can determine a three-dimensional path (eg, the user's finger) and determine whether the three-dimensional path corresponds to one or more three-dimensional gestures.
By continuously monitoring touch input devices, proximity sensors or cameras, the system can determine the three-dimensional path of a moving object based on measurements of the object by touch input devices, proximity sensors or cameras. However, the high cost of this technology could be a limiting factor for the growth of the market.
Key Insights
- Pace of Innovation is key in this industry
- Integration is the major trend
They are asked to keep up with the pace of change while the market isn't really there yet. Because together these 5 forces form the ecosystem of the power sense technology, and it is very important in a rapidly changing environment to work together, to simultaneously push the technology forward. To move the technology forward and to market as quickly as possible, power sensing vendors decided they needed to change the nature of their relationships with the rest of the industry; more specifically, they chose to work together through various forms of integration.
The advantages of the case are having an innovative new product, but on the other hand, selling them to end users is still the critical hurdle. In this strategic move, the priorities are securing the requirements and reaching the sales channel of the buyers.
RECOMMENDATIONS
Short-Term Recommendation
- The Direct route to buyers
- Why reaching forward?
- Possible Targets
Nanomade is, as far as known, the only one in the industry that can do this → this would create a LOW buyer threat. The fact that GAFAs are willing to work with LG Display illustrates its position as an innovator. This Chinese company also offers Nanomade a gross market share and may not be as difficult to approach as other players.
Based on the analysis of the possible targets, we recommend Nanomade to work with LG Display. After making the connection with LG Display, Nanomade has a foot in the door to subsequently also license to LG Mobile & Communication, to use force sense technology in various devices.
Long-Term Recommendations
- Why Co-development with Substitutes ?
Based on these insights, we recommend Nanomade to target Google for their long-term strategy. With 'Now' (voice) & 'Now on Tap' (predictive), Google can complement Nanomade's technology. Nanomade can leverage its short-term strategy targeting LG Display to reach Google.
Android has an 82% market share for operating software (2016), with a total of 1.4 billion devices running Android. There are currently 480 million devices running Android Marshmallow or higher, and therefore support Google Now on Tap.
Retrieved from http://www.printedelectronicsnow.com/contents/view_blog samsung-and-lg-move-toward-ald-for-oled-barrier-films e3zine. Retrieved from http://www.oled-info.com/cdt/cambridge_display_technology _prices_ipo_of_2_5_million_shares_of_at_12_00. Retrieved from http://www.oled-info.com/meyer-burger- ships-inkjetpecvd-oled-encapsulation-system-asian-customer.
Retrieved from https://www.wsj.com/articles/japan-display-joins-flexible-screen-battle-with-bendier-lcd-1485333870. Retrieved from http://www.provence-pad.com/presse/encapsulix-sas-selected-as-supplier- of-ald-tfe-deposition-systems-by-leading-asian-amoled-manufacturer/.
APPENDICES
Appendix A: Proportion of Force Sense technology expected in the Consumer Electronics market
Appendix B: Overview Forecasts (Flexible) Consumer Electronics, Displays & Force Sense
Forecasts of Force Sense in Consumer Electronics calculated based on the expected CAGR with corresponding values from the same source (the numbers from the original source have the same color). We assume that the proportion of Force Sense in Consumer Electronics will remain 79% over the 5-year period.
Appendix C: Industry Rivals Description” from Five-Forces Model in Part B
- Paratech
- Nissha
- Royole
- C3 Nano
Support strategic material sourcing early in the development phase of new products to ensure sustainable, manufacturable, scalable and cost-effective mass production. In 2015, Royole began mass production of its own flexible sensors and flexible electronic devices, and introduced the world's first foldable 3D virtual mobile theater. Royole also announced its 1.1 million square meter flexible display mass production campus in Shenzhen, China, with a total investment of US$1.7 billion, set to be fully operational by mid-2017.
Quick mover to begin mass production of flexible sensors and electronic devices and introduced the world's first foldable 3D virtual mobile theater. Invested in 1.1 million square foot flexible display mass production campus, which is fully operational by mid-2017.
