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    VCR Battle

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    Jose Francis
    This document summarizes the development of the VCR market between 1975-1984 and the competition between the Betamax and VHS formats. It describes how Sony introduced the Betamax format in 1975 but JVC introduced the VHS format in 1976 which eventually became dominant. Key factors in VHS's success included JVC licensing the technology to other manufacturers to mass produce VHS, increasing recording time, and gaining support from the adult movie industry. Ultimately, Sony's refusal to license Betamax and prioritize mass production capacity over technical specifications contributed to Betamax's decline and VHS becoming the leading standard.

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    VCR Battle

    Uploaded by

    Jose Francis
    9 views9 pages
    This document summarizes the development of the VCR market between 1975-1984 and the competition between the Betamax and VHS formats. It describes how Sony introduced the Betamax format in 1975 but JVC introduced the VHS format in 1976 which eventually became dominant. Key factors in VHS's success included JVC licensing the technology to other manufacturers to mass produce VHS, increasing recording time, and gaining support from the adult movie industry. Ultimately, Sony's refusal to license Betamax and prioritize mass production capacity over technical specifications contributed to Betamax's decline and VHS becoming the leading standard.

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    This document summarizes the development of the VCR market between 1975-1984 and the competition between the Betamax and VHS formats. It describes how Sony introduced the Betamax format in 1975 but JVC introduced the VHS format in 1976 which eventually became dominant. Key factors in VHS's success included JVC licensing the technology to other manufacturers to mass produce VHS, increasing recording time, and gaining support from the adult movie industry. Ultimately, Sony's refusal to license Betamax and prioritize mass production capacity over technical specifications contributed to Betamax's decline and VHS becoming the leading standard.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    9 views9 pages

    VCR Battle

    Uploaded by

    Jose Francis
    This document summarizes the development of the VCR market between 1975-1984 and the competition between the Betamax and VHS formats. It describes how Sony introduced the Betamax format in 1975 but JVC introduced the VHS format in 1976 which eventually became dominant. Key factors in VHS's success included JVC licensing the technology to other manufacturers to mass produce VHS, increasing recording time, and gaining support from the adult movie industry. Ultimately, Sony's refusal to license Betamax and prioritize mass production capacity over technical specifications contributed to Betamax's decline and VHS becoming the leading standard.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    The VCR Battle

    Strategic Maneuvering and Mass-Market Dynamics: The Triumph


    of VHS over Beta
    Case by written by Michael A. Cusumano, Yiorgos Mylonadis and Richard S. Rosenbloom

    Management of Innovation and Technology WS02/03

    Dennis Damer, Svenja Lassen and Stefan Broda

    Table of Contents
    VCR History
    Development of VCR market
    Sony is not an OEM manufacturer
    The best standard were all working on
    VCR Technology Adoption Lifecycle
    Why Sony lost

    VCR history
    1956:

    invention of the Ampex VCR

    1960s:

    stagnation on the VCR market

    1970:

    cross-licensing agreement for video


    recording patents (Sony, Matsushita, JVC)

    1971:

    Sony: Leadership of U-Matic invention

    1975:

    introduction of Sony`s Betamax format:

    1976:

    JVC introduced the Video Home System


    (VHS) format

    30% Penetration in USA

    Pre-recorded tapes soar

    VHS adoption in Europe

    Development of VCR market


    Formation of groups
    VHS: Europe and US

    * VHS *

    * Betamax *

    Decisive period:
    1975
    78
    1984:
    1975: 1976 JVC
    1977
    1978:
    1974
    - 1977
    Zenith drops
    introduced
    Introduction
    VHS
    VHS
    Group:
    Sony
    VHS
    enters
    ofMajor
    European Brands
    Beta format
    JVC,
    Hitachi,
    Betamax Matsushita,
    European
    Market
    adopt VHS standard
    End of Beta
    Sharp,
    Mitsubishi,
    Sanyo
    RCA adopts VHS
    format
    Beta Group:
    Sony, Sanyo, Toshiba

    Decisive Period

    BETAMAX

    Sony is not an OEM manufacturer

    Reluctant to share technology

    No OEM shipments
    Brand image consideration

    Started production before


    asking others
    Differentiation strategy
    Developed new features
    Unable to satisfy market

    Sony, Sanyo, Toshiba

    VHS

    JVC: The best standard were all


    working on
    Polite and humble
    Integrated partners in
    development
    Alliance building
    Mass production

    Supplied OEMs

    Imitating Sonys features


    Initial advantage:

    JVC, Matsushita, Hitachi, Sharp, RCA, Mitsubishi

    Longer playing time

    Some facts of the development


    Special Effects Comparison
    Wireless Remote
    Speed
    Slow/Still
    Portable VCR
    1/3 Speed
    Scan/Slow/Still
    Stereo recording
    Hi-fi
    One-unit camera-recorder

    Beta
    1977/3
    1977/3
    1979/3
    1978/9
    1979/3
    1979/3
    1980/7
    1983/4
    1983/7

    Recording-Playing Time
    VHS
    1977/6
    1977/6
    1977/12
    1978/2
    1979/8
    1979/8
    1979/8
    1983/5
    1984/3

    Year
    Beta
    1975/5 1 hr.
    1976/10
    1977/3
    2 hr.
    1977/10
    1978/10 3 hr.
    1979/3
    4,5 hr.
    1979/8
    1982/3
    8 hr.

    VHS
    2 hr.
    4 hr.
    6 hr.

    VCR Market share by Country and Format (1983)


    VHS
    Beta
    V-2000

    USA
    75
    25
    0

    Japan
    70
    30
    0

    Britain
    74
    24
    2

    W. Ger.
    60
    20
    20

    France
    70
    20
    10

    Italy
    60
    20
    20

    Above Totals
    72
    25
    3

    Why Sony lost


    Neglected Early Majority (Mass Market)

    Not able to satisfy demand:


    Production capacity
    Recording/Playing length of tapes

    No compromises regarding technical standard


    Human factor of business (arrogance)
    Refused to license Betamax to adult movie industry
    Network externalities

    Thank you very much


    for your attention!

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