臺大管理論叢 NTU Management Review VOL.29 NO.1

73 NTU Management Review Vol. 29 No. 1 Apr. 2019 many years of effort, it accumulated enough market knowledge to effectively promote this application while enhancing customer relationships. It eventually became the biggest supplier worldwide. After 1999, AV-Firm engaged in OEM for several local brand distributors in Japan to penetrate the PC peripheral retail market (for the buyers’ background see Table 2). This application allows PCs to act as smart TVs, saving space and money. At that time, the Japanese market was not AV-Firm’s focus area so there was no business conflict. Overall, AV-Firm had high product/service innovation potential for this product (see Table 3). AV-Firm was the dominant design player and created many smart features using PC software capabilities. AV-Firm’s design fully followed US, Japan, EU and Brazil analog TV systems. Thus, it created entry barriers for PC makers, which are more familiar with digital worldwide standards than analog products and analog TV systems. AV-Firm also had strong segment-making capabilities , filing 197 patents to protect features such as smart recorder capabilities with time-shifting functionality. AV-Firm signaled leadership to create legitimacy and superior power to hold onto resellers and users. It also promoted this PC-TV application through numerous PC exhibitions. Thus, AV-Firm chose a brand-reliant dual BM from 1999-2000, with 80% of average revenue generated by brand and 20% from OEM (see Figure 2). 4.1.4 PC-TV Tuner (2001-2008) ─Brand-Dependent Dual Business Model Business background: Several famous PC-makers mainly from Japan, such as Fujitsu, Sony, and Hitachi, heavily promoted their PCs with preinstalled tuners (buyer’s background see Table 2). After 2001, AV-Firm developed many OEM deals with them. The supplier and buyers had no conflict because the Japanese retail market was not AV-Firm’s main focus. Overall, AV-Firm had low product/service innovation potential for this product (see Table 3). It maintained dominance by raising its market awareness and service levels to meet user demands. Microsoft created a standard software interface to lower software innovation potential. The marketing director explained: “ Around 2005, Microsoft promoted PC-TV applications and gave PC-makers marketing funds, so PC-TVs became popular. ” Meanwhile, IC vendors integrated video processing circuits into chips to reduce hardware entry barriers. However, AV-Firm had strong segment-making capabilities . AV-Firm collected PC makers’ feedback to enhance its product’s reliability and compatibility. It then disseminated tuner stories and became a key cognitive player for tuners (Santos and