“Blue Ocean Strategy is a business strategy book first published in 2005 and written by W. Chan Kim and Renée Mauborgne. What the authors believe is the high growth and profits an organization can generate by creating new demand in an uncontested market space, or a “Blue Ocean”, rather than by competing head-to-head with other led lights suppliers for known customers in an existing industry.” (Copied from Wikipedia)
According to the relevant industry statistics, semi-conduction lighting will be one of the most promising industries in 21 century. The development of LED technology created the third revolution in lighting history, behind which is the huge profit potential. Over the past decade, the average annual growth rate is over 20% in global LED street lights market. High-brightness LED lighting market was growing fast. The average growth rate is around 46% from 1995 to 2005. It may probably be able to keep 40%-60% market share in next 5 years. The huge market demand spurred the development of the production. Even enterprise for other industry has diverted their attention and resources into this area, including some world’s 500 giant enterprises. They name it as LED blue ocean market.
In the interviewe, Mr. Xiao Fang, Vice Minister of Toshiba Lighting Planning sector, revealed that Toshiba have involved in both traditional fluorescent lighting market and LED lighting market presently. However, LED high bay lights will no doubt the top priority and primary objective in their agendas in consideration of sustainable long-term development. As a veteran in the electronic information industry, Toshiba intend to be a leader in the rapid development change rather than a participant. Toshiba products cover a broad range of area: radar, transistor televisions, microwave ovens, computers and other e-business products. Toshiba had a lot of confidence in entering the LED blue ocean market by virtue of their mature semiconductor technology, advanced driver design and valuable marketing experience gained from the traditional lighting business. Mr. Fang also said that brand effect brought both merits and demerits to Toshiba. No doubt, the tremendous force of the brand influence will give them an easy way to exploit the market. However, they will also be restricted in market positioning and promoting.