Market Structure and Competitive Advantage: An Emerging Value Net
Model for Interactive TV providers in Taiwan
Eunice Hsiao-hui Wang, Assistant Professor,
Department of Information Communication,
Yuan Ze University
Jimmy Chun-Ying Yu, Graduate in Master Program,
Department of Information Communication,
Yuan Ze University
Yuan Ze University
Nei-Li, Chung-Li 320, Taiwan
Phone: 886-3-4638800 + 648
Fax: 886-3-4638277
E-mail: hsiao@saturn.yzu.edu.tw
This study aims to deal with market structure and industrial competitive
advantage launching digital/interactive TV services in Taiwan.
Based on a value net
framework (See Figure 1), value-creating propositions were prepared respectively
tailored to four key market actors initiating digital TV services in Taiwan, which
are :1)terrestrial TV operators, 2) cable TV operators, 3) telcos, and 4) satellite
providers.
The theoretical framework of a value net facilitates to realize the dynamic
relationships of co-opetition among various potential interactive TV broadcasting
platforms, which include terrestrial broadcasters, cable TV operators, the
telecommunication network and the satellite operators.
The study further conducted a value system analysis of the emerging interactive
TV industry in Taiwan which suggests that 1) the core competitive advantage
expected for terrestrial broadcasters will be playing a key role as digital content
providers and digital content aggregators in terms of the value system of iTV
industry; 2) the core competitive advantage expected for cable operators will be
network/channel providing;; 3) the core competitive advantage expected for telcos
will be also network/channel providing. 4) the core competitive advantage expected
for the satellite TV operator will be content aggregating.
Based on the value system
analysis a radical competition between cable operators and telecom companies will be
highly expected for both will be the key network/channel providers in the emerging
iTV industry.
Competitors
Suppliers
Company
Customers
Complementors
Figure 1. Value Net Model
Source: Brandenburger & Nalebuff ,1996
key words: Value Net, Co-optition, Value System, Competitive advantage, Interactive
TV
References:
Keyword: Digital TV, Value Net, Broadcast, Cable, Telecom Network, Satellite
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