A Study on market potential for Moulded Rubber Component with

special reference to TV Sundaram Factory Ltd, Madurai.

Introduction

A market is any place where the sellers of a particular good or service can

meet with the buyers of that goods and service where there is a potential for a transaction to take

place. The buyers must have something they can offer in exchange for there to be a potential

transaction.

The capacity of a location, such as a country, to become or to grow as a

demander of goods and services that outside suppliers might provide. Various measures of

market potential are provided especially for emerging economies, intended as guides to exports

and foreign direct investment.

The portion of the economic potential for GHG emissions reductions or

energy-efficiency improvements that could be achieved under existing market conditions,

assuming no new policies and measures.

The maximum achievable combined sales volume for all sellers of a

specific product during a specific time period, in a specific market.

Market Potential is a quantitative estimate of the total possible sales by

all firms selling the same product in a given market. It gives an indication of the ultimate

potential for the product for the industry as a whole assuming that the ideal marketing effort is

made.

The performance of the rubber manufacturing sector in India improved

significantly with the revival of the industrial sector. The rubber goods manufacturing industry in

India showed a growth rate of 5.0 percent with a consumption of 7,55,405 tonnes during 2004-05

as against 719,600 tonnes during 2003-04 with 3.5% growth. The auto tyre-manufacturing sector

improved its growth slightly from 7.1 percent in 2003-04 to 7.4 percent in 2004-05.

The rubber goods manufacturing industry consumed 224,650 tonnes of

synthetic rubber during 2004-05 registering an increase of 6.9 percent over the previous year.

The total consumption during 2004-05 is 9,80,055 tonnes with a growth of 5.4 percent as against

4.4 percent during the previous year. The relative share of natural rubber and synthetic rubber in

India remains unchanged during 2003-04 and 2004-05 in the ratio 77:23.

History of Rubber

Rubber is one of the most important products to come out of the rainforest.

Though indigenous rainforest dwellers of South America have been using rubber for generations,

it was not until 1839 that rubber had its first practical application in the industrial world. In that

year, Charles Goodyear accidentally dropped rubber and sulfur on a hot stovetop, causing it to

char like leather yet remain plastic and elastic. Vulcanization, a refined version of this process,

transformed the white sap from the bark of the Hevea tree into an essential product for the

industrialage.

With the invention of the automobile in the late 19th century, the rubber

boom began. As demand for rubber soared, small dumpy river towns like Manaus, Brazil, were

transformed overnight into bustling centers of commerce. Manaus, situated on the Amazon

where it is met by the Rio Negro, became the opulent heart of the rubber trade. Within a few

short years Manaus had Brazil's first telephone system, 16 miles of streetcar tracks, and an

electric grid for a city of a million, though it had a population of only 40,000. Vast fortunes were

made by individuals, and "flaunting wealth became sport. Rubber barons lit cigars with $100

bank notes and slaked the thirst of their horses with silver buckets of chilled French champagne.

Their wives, disdainful of the muddy waters of the Amazon, sent linens to Portugal to be

laundered...They ate food imported from Europe...[and] in the wake of opulent dinners, some

costing as much as $100,000, men retired to any one of a dozen elegant bordellos." The citizens

of Manaus "were the highest per capita consumers of diamonds in the world."

Company Profile

The TVS Group is one of India's largest industrial conglomerates. TV

Sundram Iyengar and Sons Limited, established in 1911, are the parent and holding company of

the TVS Group. 

The largest automobile distribution company in India, TVS & Sons has an

annual turnover exceeding US$ 450 million (over Rs. 16,000 million) with a workforce of over

5000, TV Sundram Iyengar and Sons Limited operates through the three following divisions:

TVS

Sundaram Motors

Madras Auto Service

TVS and Sons distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It

represents premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., Fiat

and Honda. It also distributes automotive spare parts for several leading manufacturers.

TVS & Sons has grown into a leading logistics solution provider and has set

up state-of-the-art warehouses all over the country.

TVS Concerns

Axles India Limited - A joint venture with Eaton Limited, U.K. Manufactures axle housings

and drive heads for heavy and light commercial vehicles 

Brakes India Limited - A joint venture with Lucas Automotive, U.K. Manufactures foundation

and hydraulic brakes as well as other products for automotive and non-automotive applications.

Harita Grammar Limited - Manufacturer of automobile seats in collaboration with Grammar,

world leader in the category.

India Motor Parts and Accessories Limited - One of India's largest distributors of spare parts.

India Nippon Electricals Limited - A joint venture with Kokusan Denki, Japan. Involved in the

manufacture of magnetos.

Lakshmi Auto Components Limited - Large OE supplier of two wheeler gears and camshafts.

Lucas Indian Service Limited - Company looks after the distribution of auto electrical

components all over India.

Lucas TVS Limited - A joint venture with Lucas Industries, UK. manufactures a range of auto

electric systems. Also develops and produces vacuum pumps and gear starters with Hitachi

Limited, Japan.

Madras Auto Service - India's largest retail network of auto spares.

Southern Roadways Limited - Giant in the Indian road transport industry, company operates

largest parcel service all over South India.

Sundaram Brake Linings Limited - First Indian company to manufacture asbestos-free brake

linings, woven clutch facings and disc pads for automotive applications.

Sundaram Fasteners Limited - India's largest manufacturer of tensile fasteners. First company

to receive ISO 9002 certification. Also principal supplier of radiator caps to GM in USA.

 Sundaram Finance Limited - Leading consumer finance company in India.

Sundaram Industries Limited - With a reputation built over five decades, comprises several

divisions: custom moulded rubber products, tyre services and coach building. Also specializes in

refrigerated trucks and bunk beds.

Sundaram Motors - Major dealers for Indian and foreign cars in South India.

Sundaram Clayton Limited - Sundaram-Clayton Limited was established in 1962 in

collaboration with Clayton Dewandre Holdings Plc. (WABCO Automotive) pioneering the

manufacture of air brake systems in India.

TVS Motor Company - TVS Motor Company Limited, part of the TVS Group, is one of India's

leading two-wheeler manufacturers. With a turnover of over Rs.2800 crores [USD 574.94

million], the Company manufactures a wide range of motorcycles, scooters, mopeds and

scooterettes. Little wonder, it boasts of more than 9.5 million happy customers. 

T V Sundram Iyengar and Sons Limited - Alma mater of the TVS Group based in Madurai,

holding company for the TVS Madurai Group.

TVS Srichakra Limited – TVS Srichakra Limited was incorporated in the year 1982. With the

brand of TVS Tyres, manufactures the complete range of Tyres and Tubes for Mopeds,

Motorcycles, Scooters and Three Wheelers and is the largest supplier to two wheeler

manufacturers in India. TVS Srichakra also manufactures a range of industrial pneumatic Tyres,

Farm & Implement Tyres, Skid Steer Tyres and Multipurpose Tyres, branded as TVS Euro grip

for exports to USA, Europe, Africa and many parts of the world.

TVS GROUP - JOINT VENTURE PARTNERS

Company Name DescriptionTitan, USA 46 Years, Brake equipments for

automotive and non-automotive application

LUCAS,UK 46 years, Air Brakes

T R W, U S A 26 years, axles for commercial vehicles

WABCO,GERMANY 26 years, Turbo Chargers

DANA CORPN ,U S A 23 Years, Electronic Ignition System

BORGWARNER GERMANY 26 years, Turbo Chargers

KOKUSANDENKI,JAPAN 23 Years, Electronic Ignition SystemDelphi, USA 19 years, Fuel injection equipments

Dynacast, UK 15 Years, Precision Engineering components

Cherry, USA 14 years, snap action switches and special purpose Keyboards

Koito, japan 12 years, lighting system

Irizar, Spain 7 years, Coach building

Firestone, USA 11 Months, Air Springs

Novotema, Italy 10 Months, Precision Rubber Components

Industry profile

An ethos with a commitment to satisfy customers has established TVS

RUBBER as one of the largest manufacturers of moulded rubber products in India. TVS

RUBBER, one of the two divisions of Sundaram Industries limited, from its humble beginning in

1962 has rapidly expanded its product range and customer base. It offers a wide range of quality

products for the following segment:

Automotive- Vehicle Manufacturers, System Manufacturers and after

market.

Industrial and special products – Industrial, defence, Electrical,

Electronics, mining, Thermal, Telecom, railways and whitegoods.

Exposure to and competence in a variety of segments and applications, has

enabled TVS RUBBER to leverage successfully its enhanced knowledge of Rubber Technology,

to work with Customers from concept design to end functional requirement of custom products

for its worldwide customer base.

With an emphasis on development of eco-friendly technology, TVS

RUBBER has been adopting environment friendly material and actively implementing recycling

options.

With excellent R & D capability, TVS RUBBER has perfected the moulding

process using the entire range of polymers such as NR, SBR, Nitrile, Neoprene, POlyacrylic,

Viton, Silicone, EPDM and Butyl. It has been able to develop its core competence and align

objectives at all levels to realize synergy in operations from concept design to development of

products.

TVS Rubber’s computerized mixing system with mixing mills, Dispersion

and Internal Mixers, makes the process foolproof.

Supported by an in-built modern tool room and CAD facility, TVS RUBBER

rolls out products employing latest injection and transfer moulding techniques.

TVS RUBBER has the latest state- of- the-art equipment and its

manufacturing processes are based on the lean manufacturing system.

Beneficial elements of this system such as JIT, Kaizen, Cellular operations

are being utilized to maximize effectiveness and efficiency through a highly skilled workforce.

TVS RUBBER has embarked on a continuous improvement program by internalizing the

principles of TPM.

TVS RUBBER offer its customers the finest quality in any product

category. Quality is built in at all stages of activity through continuous improvement value for

the offerings.

TVS RUBBER has the ability to test any physical and chemical properties in

rubber and endurance testing of products to exceed customer requirement.

Growth

1962- Tyre repair materials, Bushkits

1977- In-House Toolroom

1981- Injection moulding

1986- Supply for maruti-engine mounts

1992- Formation of strategic Business units

1993- ISO 902

1996- Tie up with Bridgestone

1999- QS 900

2001- Cell manufacturing

2002- Lean manufacturing & 6 sigma

2004- TPM Excellence award TS 169-49

2006- Challenging for TPM consistency award.

Awards

DEMING PRIZE

TPM

JUSEQUALITY MEDAL

ISO 14001

ISO 9000

TS 16949

Objective of the study

Primary objective

To identify the market potential for TVS Rubber products

Secondary objective

To identify the potential area.

To identify the potential customer for the TVS Rubber products.

To check the acceptance level of the molded Rubber components among the

industrial customers.

To create the ways to promote TVS Rubber products

To determine the demand of the Rubber products.

To increase the market share.

Need of the study

The main need of the study is to identify the position of the company in the

market and also to analyze the Rubber products marketed by the company. Here the researcher is

going to identify various measures to be taken by the company to increase their market share.

Scope of the study

The main scope of the study is to identify the market potential of TVS Rubber

Industries Ltd and to identify the satisfaction level of customers.

Limitation of the study

The project study gives opinion of the significant.

There was a lack of adequate information from the customer.

Bias information may be possible from the respondents.

1. Market potential, increasing returns and geographic concentration Gordon H. Hanson ,

University of California, San Diego, IR/PS 0519, 9500 Gilman Drive, La Jolla, CA 92093-0519,

United States

National Bureau of Economic Research, United States

Received 3 January 2003; 

revised 13 August 2004; 

accepted 7 September 2004. 

Available online 7 December 2004.

Abstract

In this paper, I examine the spatial correlation between wages and consumer purchasing power

across U.S. counties to see whether regional demand linkages contribute to spatial

agglomeration. First, I estimate a simple market-potential function, in which wages are

associated with proximity to consumer markets. Second, I estimate an augmented market-

potential function derived from the Krugman model of economic geography, parameter estimates

for which reflect the importance of scale economies and transport costs. The estimation results

suggest that demand linkages between regions are strong and growing over time, but quite

limited in geographic scope.

Keywords: Spatial agglomeration; Market potential; Increasing returns; Transport costs

2. Market potential for probioticsCatherine Stanton, Gillian Gardiner, Hillary Meehan, Kevin Collins, Gerald Fitzgerald, P Brendan Lynch and R Paul Ross 1 From Teagasc, Dairy Products Research Centre and Pig Production Department, Fermoy, Ireland; Teagasc, National Food Centre, Dublin; and the Department of Microbiology, University College, Cork, Ireland.

Functional foods as a marketing term was initiated in Japan in the late 1980s and is used to describe foods fortified with ingredients capable of producing health benefits. This concept is becoming increasingly popular with consumers because of a heightened awareness of the link between health, nutrition, and diet. Food manufacturers are enthusiastic about developing such products because the added ingredients give increased value to food. The global market for

functional foods in the coming years is predicted to grow rapidly. Although Japan currently accounts for about one-half of this market, the fastest rate of growth is expected to be in the United States. Probiotic products represent a strong growth area within the functional foods group and intense research efforts are under way to develop dairy products into which probiotic organisms such as Lactobacillus and Bifidobacterium species are incorporated. Such probiotic foods may modulate gut microbial composition, thereby leading to improved gut health, for example, through improved tolerance to lactose in lactose-intolerant individuals or improved resistance to pathogenic bacteria. Large numbers of viable microorganisms are likley to be required in the food product, which should be consumed regularly to experience the health effect. The probiotic market, especially dairy products such as yogurts and fermented milks, has experienced rapid growth in Europe. The long-term exploitation of probiotics as health promoters is dependent on several factors, including sound, scientifically proven clinical evidence of health-promoting activity; accurate consumer information; effective marketing strategies; and, above all, a quality product that fulfills consumer expectations.

Key Words: Market • probiotics • functional foods • dairy products

3. Wages and Market Potential in Germany

Michael Roos

Abstract Using a market potential function, we examine the spatial correlation of wages and consumer purchasing power across regions in West Germany. The market potential function can be regarded as a reduced form of several new economic geography models. Thus, the estimation results provide some first evidence on the validity of these models for European regions. We find that the wage in one region is indeed positively related to purchasing power in other regions. However, this relationship only holds for skilled wokers' salaries and wages, whereas it does not for the wages of untrained workers.

4. Market Potential and the Location of Japanese Firms in the European

Union

Head, KeithMayer, Thierry

Abstract This paper develops a theoretical model of location choice under imperfect competition to formalize the notion that firms prefer to locate “where the markets are.” The profitability of a location depends on a term that weights demand in all locations by accessibility. Using a sample of Japanese firms’ choices of regions within European countries, we compare the theoretically derived measure of market potential with the standard form used by geographers. Our results show that market potential matters for location choice but cannot account entirely for the tendency of firms in the same industry to agglomerate.

5. Miniature Solar Cells Market Potential

Solar power is the technology of obtaining usable energy from the light of the Sun. Solar energy has been used in many traditional technologies for centuries and has come into widespread use where other power supplies are absent, such as in remote locations and in space. )  Photovoltaics (PV) is the field of technology and research related to the application of solar cells for energy by converting sunlight directly into electricity. Due to the growing demand for clean sources of energy, the manufacture of solar cells and photovoltaic arrays has expanded dramatically in recent years.   While solar cells have been around for many years now, it is only recently that the advances made in technology have made it possible for researchers to make solar cells more efficient.   Miniature' solar cells are essentially those solar cells that are used to power small devices such as consumer electronic devices, microelectronics, and grid applications.   This report examines how the advent of miniature solar cells is changing the landscape of the solar photovoltaic industry. The report takes a look at this industry through case studies along with a theoretical analysis of the concept of miniature solar cells as well. 6. Market Potential of a Fast-Food Outlet Against Location Based on

Customer Traveling Distance Profiles  Authors: Francis Kit-Nam Leunga; Carmen Ka-Man Cheukb Published in: Journal of Restaurant & Foodservice Marketing, Volume 4, Issue 1 October 2000 , pages 47 – 75

Abstract This paper studies how best to estimate the market potential of a fast-food outlet based on customer traveling distance profiles. We selected two outlets from a fast-food chain in Hong Kong, one located in a business district, the other in an urban area, as typical demonstrations. According to the hourly sales indices of either outlet, sales can be categorized into four time segments. The potential market population of each time segment for each outlet is first determined from customer traveling distance profiles. The overall potential market population for each outlet is then determined. To determine the market potential of an outlet, we need to include two factors: the fraction of this population having fast food and the associated frequency of having fast food, in addition to the overall potential market population. Aspects determining these three factors are also examined.

Keywords: Market potential; market zone; potential market population; fraction; frequency

7. Market Potential Estimation in International Markets: A Comparison of Methods 

Author: A. N. M. Waheeduzzaman Published in: Journal of Global Marketing, Volume 21, Issue 4 September 2008 , pages 307 –

320

Abstract

Marketers use various market potential estimation techniques in international markets. These include method of analogy, proxy indicators, chain ratio method, time series analysis, and multiple regression modeling. This study shows how demand or market potential can be estimated using these methods and compares the findings. The study should be useful to both managers and academics interested in the theory and practice of demand estimation. Although emerging markets and durables are used as examples, the methods discussed are universal and can be applied in any country market.

Keywords: Demand; demand estimation; market potential; consumer durables

8. Market potential in British regions, 1871-1931  Author: Nicholas Craftsa

Published in: Regional Studies, Volume 39, Issue 9 December 2005 , pages 1159 - 1166 Abstract

Crafts N. (2005) Market potential in British regions, 1871-1931, Regional Studies 39 , 1159-1166. This paper constructs measures of market potential for British regions based on the spatial distribution of Gross Domestic Product and its accessibility. The results show that the North, Scotland and Wales were much less 'peripheral' before the First World War than in 1985. The main reason for the deterioration in their position was changing transport costs associated with the demise of coastal shipping and the rise of road haulage. The implications of technological progress in transportation for relative market potential over the long run have gone unremarked but should not be forgotten as globalization forges ahead.

Keywords: Market potential; Peripherality; Potential commercial; Market potential.

9. Market Potential for a Physician-Director Weight Management Program  Authors: Adele H. Deverella; Martha A. Blanchette Published in: Journal of Ambulatory Care Marketing, Volume 1, Issue 2 June 1987 , pages 95 - 103

Abstract After developing and testing a physician-directed weight management product and program, a group of nutritionists wanted to market the program nationally. This article explains the factors investigated to determine the market potential of the program and recommendations for the initial target marketing.

10. The potential market for robotic assemblyAuthor: Jeffrey L. Funk Senior Engineer - Present address 5836

Published in: International Journal of Production Research, Volume 24, Issue 3 May 1986 , pages 663 - 686 Abstract This paper estimates the potential market for robotic assembly. The potential market is defined in terms of: (i) the percentage of assembly: (ii) the number of displaced workers and (iii) the number of installed robots, where robots are a lower-cost method than conventional techniques (hard automatic and manual). It also estimates the effects of developments in visual sensing for part recognition, tactile sensing for flexible grippers and reduced control engineering costs (software) on the economics and potential market for robotic assembly. Though the primary concern is to estimate future, as opposed to existing, costs of robotic assembly, many of the cost estimates are based on systems that are currently available. The paper has implications for product and research and development planning in industry, universities and federal research and development programmes.

11. A practical approach to identifying the market potential for high speed rail: A case study in the Sydney-Canberra corridor

David A. Hensher

Institute of Transport Studies, Graduate School of Business, The University of Sydney, Sydney

NSW 2006, Australia

Received 2 April 1996; 

revised 9 December 1996. 

Available online 10 June 1998.

Abstract

This paper presents the methodology and selective empirical results from a study of the demand

for a high speed rail system serving the Sydney-Canberra corridor currently dominated by air

travel for business trips and car travel for non-business trips. We outline the steps involved in the

study from problem specification, data needs, development of base year trip tables, model

specification and estimation to establish switching behaviour in the presence of a new mode and

calculation of induced demand for current travellers. A stated choice heteroskedastic extreme

value switching model is used to evaluate the choice of fare type for business and non-business

travel given the current mode used in the corridor for each sampled traveller conventional train,

charter coach, scheduled coach, plane or car. Starting with the current travel profile, patronage

can be predicted under alternative fare regimes, taking into account diverted traffic, induced

traffic and growth. Treating fare class as endogenous enhances the real choice context facing

potential patrons.

12. Regional wage and employment responses to market potential in the EU Keith Heada, and Thierry Mayer

Abstract

In new economic geography models, the spatial distribution of demand is a key determinant of

economic outcomes. In one strand, it is argued that higher demand gives rise to a more than

proportionate increase in production, a result known as the home market effect. Another strand

emphasizes the effects of market sizes on factor prices. We highlight the theoretical connection

between these two strands. Using data on 57 European regions, we show how wages and

employment respond to differentials in what we call real market potential, a discounted sum of

demands derived from the theory.

Keywords: Home market effects; Wage equation; Gravity equation; New economic geography

13. Evaluating the Potential of Interactive Media through a New Lens: Search versus Experience Goods Lisa R. Klein

Abstract

The burgeoning growth of interactive media, and more specifically the Internet, as

communication vehicles has inspired a flurry of market research that attempts to measure the

impact of advertising in the new media, utilizing traditional advertising measurement methods.

However, the full impact of these new media will not be realized unless we engage in more

thorough research into how to evaluate their potential in terms of their influence on information

search behavior. This article seeks to provide direction for such exploration by proposing a new

model of consumer information search that integrates the principles of information economics

and a goods classification model based on the search/experience/credence paradigm. This model

will facilitate a greater understanding by marketers and academics of how a medium can

influence consumer information search through its impact on the critical information consumers

have access to prior to product usage.

14. Market potential for organic foods in Europe Mette wier and Carmen calverleyDanish Institute of local government studies,Copenhagen,Denmark

Abstract Examines the potential of organic foods in European markets, focusing on consumer demand for organic foods and the possibilities for market expansion. Aims to assess potential sales,to identify the factors determining buying propensity, and to identify the main market barriers. Identifies the types of consumers who purchase organic foods, classifying them according to socio-economic and demographics characteristics. Elucidates the motives for purchasing and the willingness to pay. Identifies the main market barriers and bottlenecks, and examines the potential for future expansion.

Introduction Consumer interest in organic food has grown tremendously in many industrialized countries during the past ten years. Growth has been especially high in Denamrk, which also has the highest per capita consumption of organic food in the world. However, organic consumption in most coutries comprises only a small percentage of the entire food consumption. Today, organic producers are still only occupying a niche, but may have a much larger potential. The purpose of this paper is to analyse how far and under which conditions such a development could take place. The potential demand for organic foods is evaluated by examining the most important factors influencing consumer choice, while concentrating mainly on which consumers buy organic foods, their motives, market growth, and the barriers to continuing expansion of the organic market. The analysis is based on existing literature concerning European consumers, as well as own research into Danish consumersd, which analyses demand for various organic and conventional products. This earlier study is based on observations of actual purchases, product prices, and household characteristics of approximately 2,300 households during 1997-1998.

Keywords: Organic food, Consumer behaviour, Marketing

15. Tourism Market Potential Analysis in Botswana: A Delphi Study

1. Erdener Kaynak 1. Department of Marketing at the School of Business Administration, Pennsylvania

State University at Harrisburg1. Edward E. Marandu

1. Faculty of Business Administration, University of Botswana in Gaborone

Abstract This article explores what would be the most probable scenario for the tourism industry in Botswana by the year 2020. A modified Delphi technique was used to generate data from 68 industry experts. The findings show that experts forecast progressively more changes and higher impact as one moves from values, structures, and events. The implication for policy makers and industry operators is that efforts aimed at increasing tourism may prove more fruitful if focused on changing structures and hosting events, rather than changing the values of the people. The study also improves on the understanding of Delphi forecasting behavior. It demonstrates that an expert who is optimistic on one factor—say, values—is likely to perceive the same with regard to other factors such as structure and events.

16. A technology replacement model with variable market potential — An empirical study of CRT and LCD TV

Victor B. Kreng and Hsi Tse Wang

Received 9 July 2008; 

revised 7 February 2009; 

accepted 9 February 2009. 

Available online 25 March 2009.

Abstract

The rapidly changing economic environment and increasingly fierce

competition indicate that companies must innovate in both their products and marketing

strategies if they are to continue to flourish. Specifically, the ability to accurately predict the

demand for products is crucial when firms decide to allocate their resources, especially in the fast

moving high technology industries, where there is very high investment in R&D and production

facilities. This study establishes a forecast model for technology replacement based on the

diffusion model with population growth used for the variable market potential. The proposed

model is then applied to investigate the CRT and LCD TV market.

The results suggest that the new model is more accurate than the constant market potential model

in fitting and forecasting performance. Consumers who purchase a TV for the first time are likely

more attracted to LCD TV rather than CRT TV. As for those individuals who already own a

CRT TV, the attraction is not strong enough to encourage them to replace their current CRT TV

with a new LCD TV. Moreover, it is noted that the falling price of LCD TV is an essential factor

in encouraging purchases.

Keywords: Diffusion model; LCD television; Forecasting; Technology replacement; Market

potential

17. The Thai Solar Thermal Industry Outlook (2007) Submitted by Raquel Costa on Sat, 06/26/2010 This document was produced by the Solar Thermal Association in Thailand. It provides a thorough overview of the Soltherm project. The Market Development Solar Thermal Applications in Thailand project (Soltherm Thailand) is funded by the EU-Thailand Economic Cooperation Small Project Facility (EU-SPF) and jointly implemented by the Joint Graduate School of Energy and Environment (JGSEE), the International Institute for Energy Conservation (IIEC) and the Fraunhofer Institute for Solar Energy Systems (ISE).This document is the executive summary of the Soltherm project final report. The report goes through the activities carried out in 2006 and 2007 in the framework of the project.Information covered by the report includes technical and non technical barriers to the development of the sector, standards and quality, economic and financial feasibility, policy measures, potential and recommendations for solar thermal in Thailand.

18. The Market Potential of Micro-CHCP (2009) Submitted by Raquel Costa on Thu, 06/10/2010

This is a study assessing the market potential of small scale Combined Heating Cooling and Power (CHCP) in several European countries (Austria, Czech Republic, Germany, Italy, Netherlands, Poland, Portugal, Spain, Sweden and Switzerland).

The study is one of the final deliverables of the PolySMART Project (POLYgeneration with advanced small and medium scale thermally driven air-conditioning and refrigeration technology), an integrated project partly funded by the European Commission under 6th Framework Programme.

The project started in 2006 and lasted four years and had as an objective to promote and facilitate the market penetration of these technologies, by demonstrating the cost-effective and environmentally friendly solutions it provides.

19. Exploring the market potential and bundling of business association services

Article Abstract:

Research information regarding the potential of bundling services by business associations is

given. Research shows that such bundling does not increase usage as most joiners associations

use business associations on a "just in case" basis to gain access to a range of services.

Publisher: Emerald Group Publishing, Ltd.Publication Name: The Journal of Services Marketing

20. MARKET POTENTIAL FOR NANOTECHNOLOGY AND PHOTOVOLTAICS TRENDS

Brand new inform upon “Nanotechnology as well as Photovoltaics Trends & Market Potential” this inform looks during how nanotech is creation probable brand brand brand brand brand new developments in a solar PV industry. Nanotechnology as well as Photovoltaics Trends & Market Potential Nanotechnology, condensed to “Nanotech”, is a investigate of a carry out of make a difference upon an atomic as well as molecular scale. Generally nanotechnology deals with structures of a distance 100 nanometers or smaller, as well as involves building materials or inclination inside of which size. ( http://www. bharatbook. com/Market-Research-Reports/Nanotechnology-and-Photovoltaics-Trends-Market-Potential. html ) Nanotechnology is really diverse, trimming from novel extensions of required device physics, to utterly brand brand brand brand brand new approaches formed upon molecular self-assembly, to building brand brand brand brand brand new materials with measure upon a nanoscale, even to conjecture upon either you can without delay carry out make a difference upon a atomic scale. Although nanotechnology is a comparatively brand new growth in systematic research, a growth of a executive concepts happened over a longer duration of time. Photovoltaic (PV) is a margin of record as well as investigate associated to a focus of solar cells for appetite by converting object appetite (sunlight or object ultra violet radiation) without delay in to electricity. Due to a flourishing direct for purify sources of energy, a make of solar cells as well as photovoltaic arrays has stretched dramatically in brand new years. The entrance together of these dual technologies has turn a speak of a locale lately. This inform looks during how nanotechnology is becoming different a margin of photovoltaic innovation. From a basis of nanotech to a basis of photovoltaic, this inform looks during how nanotech is creation probable brand brand brand brand brand new developments in a solar PV industry.

21. Market potential in British regions, 1871-1931

Abstract

This paper constructs measures of market potential for British

regions based on the spatial distribution of GDP and its accessibility. The results show that the

North, Scotland and Wales were much less 'peripheral' before World War I than in 1985. The

main reason for the deterioration in their position was changing transport costs. The

marginalization of coastal shipping and the rise of road haulage had markedly accentuated the

'peripherality' of outer Britain by 1931. The sensitivity of market potential to changes in relative

transport costs has gone unnoticed but it underlines the danger of conflating 'peripherality' with

competitiveness.

22. Market Potential for Subway

Paper Summary:

This paper presents a marketing potential analysis for a new Subway location. The paper looks at

a number of factors including location, demographics, income, population trends and socio-

economic trends. The paper concludes that market potential exists for the location in question.

From the Paper:

"Market potential is one of the most important factors in determining the location of any

business. If the market potential for the area is not large enough for a particular business then

that business will fail because it will not have a big enough customer base. This part of the paper

will examine the market potential for new Subway store that will possibly be built at 526 Yonge

Street (Appendix 1). Basically we want to know if the area in which this store is located will

have the right set of conditions to provide a large enough customer base."

Tags: marketing, potential, analysis

23. Assessing the lead market potential of countries for innovation projects

Marian Beisea, , and Thomas Cleffb

aResearch Institute for Economics and Business Administration, Kobe University, 2-1 Rokkodai, Nada-ku, Kobe-shi, Japan

bPforzheim University of Applied Sciences, Pforzheim, Germany

Available online 28 September 2004.

Abstract

This paper presents an approach to assessing the potential of countries to lead the global

adoption of an innovation and to set a global product or process standard. It can be observed that

the specific design of an innovation diffuses worldwide after it has been adopted in a single

country. We suggest that there are nation-specific characteristics that increase the likelihood that

a locally preferred innovation design will become successful in other countries, too. Once users

in a market that has lead market characteristics have adopted a specific innovation design, the

possibility increases that users in other countries subsequently adopt it as well. We present a lead

market concept for the development of global innovation designs. By focusing on the design of

the innovation that responds to the preferences within the lead market, a company can leverage

the success experienced in the lead market for a global market launch. In order to follow a lead

market strategy of new product development, it is necessary to assess the lead market potential of

countries before an innovation is developed and tested in the market. We use an indicator-based

methodology that approximates the lead market attributes of countries. The assessment

methodology is applied to two innovation projects at the truck division of DaimlerChrysler.

Keywords: Global innovation development; Global diffusion; Global market entry

24. Bio-diesel: Initiatives, potential and prospects in Thailand: A review Manjula Siriwardhana , a, , G.K.C. Opathellaa and M.K. Jhaa

aEnergy field of study, School of Environment Resources and Development, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand

Received 2 April 2008; 

accepted 17 September 2008. 

Available online 18 November 2008.

Abstract

Thailand experiences a great economic and industrial development and is the second largest

energy consumer in South East Asia. Being a net oil importer, Thai government has declared a

renewable energy development programme in order to secure sustainable development and

energy security. Thailand spends more than 10% of GDP for energy imports and transport sector

accounts for 36% of total final energy consumption of which 50% is diesel. Diesel marks a huge

impact on Thai economy. Thai government's bio-diesel development strategy is to replace 10%

of petro-diesel in transport sector by bio-diesel by 2012. The plan is to increase the use of bio-

diesel from 365 million liters in 2007 to 3100 million liters by 2012. This paper reviews the

current status and potential of bio-diesel in Thailand and investigates and discusses the qualities

and weaknesses of the proposed road-map. The proposed road-map definitely gives immediate

solution for soaring oil prices, but the long-term economic, environmental and social impacts

need to be examined.

Keywords: Bio-diesel; Thailand; Energy policy

25. Testing and evaluating commercial applications of new surface-treated rubber technology utilizing waste tires

F. G. Smitha, b, 1, E. J. Danielsb, a and A. P. S. Teotiaa, b,

a Environmental Technologies Alternatives, Inc., 5065 East Sloan Street, Port Clinton, OH 43452, USA

b Argonne National Laboratory Energy Systems Division — Building 362, Argonne, IL 60439, USA

Received 9 June 1995; 

revised 29 June 1995; 

accepted 13 July 1995. ;

Available online 22 December 1999.

Abstract

Standard, untreated, crumb rubber typically commands a low selling price, usually

$0.33–0.66/kg. This low value has limited the full recovery of the rubber from waste rubber

products. An emerging technology involving the surface treatment of rubber particles with

chlorine gas may improve the characteristics of waste rubber so that it can be used in high-value

products, which could support a higher price for treated rubber. This research identifies the two

most significant end-use markets for treated rubber particles: footwear (shoe soles and

components) and urethane-foam carpet underlay markets. In these major markets, research has

clearly demonstrated that two categories of surface-treated rubber particles can be used easily in

existing manufacturing plants and processes and has shown that the material meets or exceeds

existing standards for performance, quality, and cost-effectiveness. The combined market

potential of the surface modified rubber particles is estimated to be 108 kg/yr. The current price

of the surface-treated material is estimated to be $1.10–1.43/kg, which could be economically

sustained in these high-value applications. Modifying the surface of scrap tire rubber may also

yield substantial energy savings. The modified scrap rubber may also contribute greatly to the

use of postconsumer scrap-tire waste as a higher value material in polymer compounding. One

barrier is moisture in the surface-treated rubber material (0.8–1%), which is curtailing the

commercial success of surface-treated rubber particles in urethane-molded products. Further

development is under way to correct that problem.

Author Keywords: Rubber recycling technology; Surface-treated-rubber technology; Waste tire

rubber product; Tire recycling

26. An Empirical Analysis of the Potential for Market Power in California's Electricity IndustrySeverin Borenstein & James Bushnell 1 Haas School of Business, University of California, Berkeley, CA 94720, and University of California Energy Institute, 2539 Channing Way, Berkeley, CA 94720-5180, and National Bureau of Economic Research, USA, 2 University of California Energy Institute, 2539 Channing Way, Berkeley, CA 94720-5180, USA

ABSTRACTUsing historical cost data, we simulate the California electricity market after deregulation as a static Cournot market with a competitive fringe. Our model indicates that, under the pre-deregulation structure of generation ownership, there is potential for significant market power in high demand hours, particularly in the fall and early winter months when hydroelectric output is at its lowest level relative to demand. The results also show that two of the most important factors in determining the extent and severity of market power are the level of available hydroelectric production and the elasticity of demand.

27. A retail market potential model  authors: j. r. lakshmanan; walter g. hansen

DOI: 10.1080/01944366508978155 Publication Frequency: 4 issues per year Published in: Journal of the American Planning Association, Volume 31, Issue 2 May 1965 , pages 134 - 143

Abstract The authors explore possible equilibrium distributions for large retail trade center's in the Baltimore metropolitan area. Possible sites for centers are selected on general planning grounds and tested for feasibility and “balance.” Balance is determined in terms of the volume of business attracted by each center in relation to its size. By repeated trials, it is established that there exists a balanced distribution in which the size of centers is related to their drawing power, which in turn depends on the distribution of purchasing power projected for the area and the transportation facilities and for trip-makers. This land use model is intimately related to transportation models, by The balanced distribution of retail outlets turns out to be the minimum cost pattern for trip-makers. This land use model is intimately related to transportation models, by way of network tracing and a gravity model trip distribution theory. It represents a departure from some of the restrictions of central place theory

28. Market potential of renewable energy powered desalination systems in Greece

D. Voivontasa, K. Yannopoulosa, K. Radosb, A. Zervosb and D. Assimacopoulosa, ,

a Chemical Engineering Department, Process Analysis and Plant Design Section, National

Technical University, 9 Heroon Polytechniou, Zografou Campus, GR-157 80, Athens,

Greece Tel. +30 (1) 772-3218; Fax +30 (1) 772-3155

b Mechanical Engineering Department, Fluids Section, National Technical University of Athens,

Athens, Greece

Received 4 November 1998; 

accepted 27 November 1998. ;

Available online 30 June 1999.

Abstract

The present work analyzes water management strategies based on advanced desalination

schemes powered by renewable energy sources. The framework for developing a decision

procedure, which monitors water shortage problems and identifies the availability of renewable

energy resources to power desalination plants, is presented. Cost of alternative solutions, taking

into account energy cost or profits by energy selling to grid, is estimated. Emphasis is given to

the market forces and the relationship of technology prices and market potential. A case study for

the Aegean Islands in Greece is presented.

Author Keywords: Desalination; Renewable energy; Reverse osmosis; Water market potential

29. Enlargement and the EU Periphery: The Impact of Changing Market Potential

Marius Brülhart 1 , Matthieu Crozet 2 and Pamina Koenig 3 1 DEEP-HEC, University of Lausanne and CEPR, 2TEAM, University of Paris I and CNRS, 3CREST and University of Paris I

ABSTRACTWe study the impact of changing relative market access in an enlarged EU on the economies of incumbent Objective 1 regions. First, we track the impact of external opening on internal spatial configurations in a three-region economic geography model. External opening gives rise to potentially offsetting economic forces, but for most parameter configurations it is found to raise the locational attractiveness of the region that is close to the external market. Then, we explore the relation between market access and economic activity empirically. We simulate the impact of enlargement on EU Objective 1 regions. Predicted market-access-induced gains in regional GDP and manufacturing employment are up to seven times larger in regions proximate to the new accession countries than in 'interior' EU regions. We also find that a future Balkans enlargement could be particularly effective in reducing economic inequalities among the EU periphery, due to the positive impact on relative market access of Greek regions.

30. Market potential and productivity: Evidence from Finnish regions Gianmarco I.P. Ottaviano , a, and Dino Pinellia

aUniversity of Bologna, Italy

Available online 2 August 2006.

Abstract

New economic geography (NEG) stresses the role of various types of linkages as agglomeration

forces. We show that a typical NEG model can be used to design an empirical methodology to

assess whether linkages are relevant at all and, if so, whether they are more important for firms

or workers in terms of productivity or amenity respectively. Applying the proposed methodology

to Finnish NUTS 4 regions from 1977 to 2002, we find that linkages are indeed relevant and that

firm-related demand and cost linkages are more important than worker-related cost-of-living

linkages.

Keywords: New economic geography; Finland; Market potential; Migration; Productivity

31. Multichannel somato sensory evoked potential study demonstrated

abnormalities in cervical cord function in brachial monomelic

amyotrophy

A Nalini1, S Praveen-Kumar1, Beulah Ebenezer1, S Ravishankar2, DK Subbakrishna3

1 Department of Neurology, National Institute of Mental Health and Neurosciences, Bangalore,

India2 Department of Neuroradiology, National Institute of Mental Health and Neurosciences,

Bangalore, India3 Department of Biostatistics, National Institute of Mental Health and Neurosciences, Bangalore,

India

Abstract

Background: Brachial monomelic amyotrophy (BMMA) is known to affect the central cervical cord gray matter resulting in single upper limb atrophy and weakness. Settings and Design: Case series of BMMA patients who underwent somatosensory evoked potentials (SEP) studies at a tertiary referral center. Aims: We proposed to record Multichannel Somatosensory Evoked Potentials (MCSSEP) from median and ulnar nerves with neck in neutral and neck fully flexed position in 17 patients with classical BMMA seen over three years. Materials and Methods: Recordings were done from both median (MN) and ulnar nerves (UN). N9, P9, N13, N20 potentials were recorded and amplitudes measured. SSEPs were performed in 22 age-matched healthy men. Amplitudes of cervical response were calculated by N13/P9 ratio and compared in both positions. Results: Among the controls N13 amplitude was always normal {MN: mean N13/P9 - 0.96 in neutral; 0.95 in flexed}{UN: mean N13/P9 - 0.82 in neutral; 0.83 in flexed}, and mean amplitudes did not reveal any difference in both conditions ( P >0.05). Among 17 patients N9, P9 and N20 responses were normal in neutral position. Flexion showed no change in latency or amplitude of N9 and N20 responses ( P -0.63) whereas the N13 response was abnormal in at least one tested nerve in the affected limb (MN: P <0.01; UN: P <0.01). During flexion, N13 response was abnormal in 14 (82%) patients after MN stimulation and in all 17(100%) after UN stimulation {MN: mean N13/P9 - 0.62 in neutral; 0.38 in flexed}{UN: mean N13/P9 - 0.55 in neutral; 0.31 in flexed}. Conclusion: MCSSEP in BMMA with neck flexion

caused a significant reduction of the cervical N13 response indicating segmental cervical cord dysfunction.

Keywords: Brachial monomelic amyotrophy, multichannel somatosensory evoked potential, magnetic resonance imaging

32. Assessing market potential of technological innovation: the case of Intel's microprocessorInternational Journal of Business Strategy, Sept, 2007 by Alan S. Khade

ABSTRACT

This research paper focuses on a different angle to confer extent by which market

potential influences the technology innovation. The main study areas of this research paper will

be: defining terms of market potential and technology innovation, analyzing market potential and

the driving force of technological Innovation in assessing market potential of technological

innovation, searching for the relationship between market potential and technological innovation

and analysis of why it's important to consider market potential when innovating the technology.

Seeking the way to assess Market potential of technological innovation and use the case of Intel

as example to make the whole research more understandable. This research paper will attempt to

establish a relationship between market potential and technology innovation.

Keywords: market potential, technology innovation, demand-pull, technology push.

1. INTRODUCTION

Today, a lot of the industry research discusses about the market potential or technology innovation. These two topics seem to be close but there is no attempt to find out the relationship between these two. What drives the technology innovation? The relationship between market potential and technology innovation is always important in all kinds of industry.

In the technology industry, technology innovation has been cited as one of the key factor that affects competitiveness. Yet despite widespread agreement about its benefits, the relationship between market potential and technology innovation is still poorly understood. Definition is confused and the link between market potential and technology innovation remains to be proven.

This research paper reviews the literatures and reports of related study into the relationship between market potential and technology innovation. The aim of this research paper is to find out the relationship between market potential and technology innovation, defining the definitions clearly. With the case study of Intel's microprocessor, the study will looking for the market potential between different generations of microprocessor, the relationship between market potential and technology innovation will be easier to understand.

2. LITERATURE REVIEW

According to Bernadette McGahon & Gwilym Williams in the New Ideas For Business, if the invention of technology is suitable for patenting in terms of its novelty, then determining whether there is enough commercial potential to warrant the significant financial investment in obtaining a patent is of paramount importance. A commercial evaluation of market potential involves identification of commercial application(s) and markets, determining market potential and overall commercial potential, assessing competing technologies or products, and estimating the potential returns relative to development costs and barriers. A thorough consideration of each of these issues will allow determination of the best mode of commercialization.

As mentioned by Ende, J. van den in his paper "Technology Push, Demand Pull And The Shaping Of Technological Paradigms--Patterns In The Development Of Computing Technology" an assumption generally subscribed in evolutionary economics is that new technological paradigms arises from advances in science and developments in technological knowledge. Demand only influences the selection among competing paradigms, and the course the paradigm after its inception. In this paper, we argue that this view needs to be adapted. The history of computing technology in the 20th century a distinction can be made between periods in which either demands or knowledge development was the dominant enabler of innovation. In the demand enabled periods new technological paradigms in computing technology have emerged as well. From these articles, we understand that the relationship between market potential and technology innovation is complex. This research paper assess this kind of relationship and how these two theories influence each other.

Definition of Market Potential:

A market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for there to be a potential transaction. Shortly, market potential could be defined as "A set of consumers who profess some level of interest in a designed market offer." When need to talk to further, we can say that market potential is "market opportunities and invest resources where they will have the greatest return in the long run."

Knowing where the market potential is could help the company categorize countries as lead markets, break-out markets or emerging markets, quantify market potential for a given product by country, region or globally, now and in the future, identify growth drivers and barriers in those markets. Also, the company could understand how to exploit growth markets by tailoring marketing, product development and production and set up strategies to meet customer demands and overcome market barriers.

How to sense and develop market potential:

Knowing where is our market and sizing the market: In order to sense the market potential, we have to know our market size first. Studying historical prime contracts data is a useful way to establish a floor for estimating the true size of your company's niche in the marketplace. There are a number of ways to estimate market size depending on how full a picture of your market you seek. Although some firms define their markets in terms of agency or geography, markets are most commonly defined in terms of Product/Service Codes (PSCs) and Standard Industrial Classification (SIC) Codes. After find where is our market, we need to project the market potential.

Projecting the market potential:

When projecting a market's potential for your product, there is no single method for success. Competition, consumer's income levels, product and company image, location, pricing, traffic flow, population density and other factors are used to gauge the success or failure of this industry. Even differences in product lines sold within a given store can impact the number of customers and how are they will travel to shop.

The principles of determining market share and market potential are the same for all geographic areas. First determine a customer profile (who) and the geographic size of the market (how many). This is the general market potential. Knowing the number and strength of your competitors (and then estimating the share of business you will take from them) will give you the market potential specific to your enterprise.

Evaluate the Market Potential of the industry:

Technological Innovation:

Technology Innovation is one of the global economy driver and thousands of years of technological innovation have brought us from a farmer/hunter society to the high-tech world in which we live today. (For example, space technology has been a main driver in technological innovation; the best example is the landing on the moon required new and revolutionary technology) Technology Innovation used to define, as is the conversion of technology knowledge and ideas into a benefit, which may be for commercial use or for the public good; the benefit may be new or improved technology related products, processes or even technology services.

Evaluate the Technological Innovation in industry:

Clayton Christensen distinguishes between two types of innovation: A sustaining innovation allows companies to make existing services better, faster, or more affordable, while an industry-changing technology creates new opportunities in a whole new marketplace.

Christensen has defined a three-part litmus test to help industry participants evaluate a technology is industry-changing potential. Business leaders must first determine whether there is

a growth opportunity for the technology. Next, they must consider if a technology has the ability to attract customers away from a mainstream market. Finally, they must evaluate whether an industry-changing technology has the ability to take over an existing marketplace.

In making evaluation of when to act, exploit, invest, or defend, relative to a particular innovation, it's very necessary for a service provider to understand their own characteristics. How quick are they to respond? How open are they to competition? What opportunity do they have in attacking on someone else's territory? What's their relationship to the customer base today? How strong is that relationship? Understanding all those attributes of your organization let's you determine what's the best approach for tracking innovations and making a determination of how to act with respect to them.

So, an example of that would be a company that had a weaker relationship with its major customers would tend to be forced to act faster and be more responsive to whatever was happening in order to strengthen their position and ensure that there was less erosion of any potential business. Similarly, a company that has a very strong relationship with their existing customer base can quite often watch and wait for innovations to be incubated in the marketplace before they act on incubations themselves.

One of the useful tools to start with is looking at innovation is to say is this innovation a sustaining innovation, which is it helps make my current business better. Or is this innovation a potentially industry changing innovation and the simple form of that is this innovation allowing me to enter a brand new marketplace? Not an extension of a current one, not a betterment of the current ones I have today, but a brand new marketplace.

3. ACCESSING MARKET POTENTIAL OF TECHNOLOGICAL INNOVATION:

The relationship between market potential and technological innovation: In business today, especially in technology-based businesses, there is a "primary risk factor". It is competition! All other business risks can be managed or hedged. Today's technology leaders can become tomorrow's technology losers. When talking about the relationship between market potential and technological innovation, we have to talk about the hypotheses of "technology-push" and" demand-pull." These two hypotheses are the most important reason that access market potential and technological innovation.

Technology Push:

Technology development that is driven by ideas or capabilities created by the development organization in the absence of any specific need that customers might have. In technology push situations, innovations are created and then appropriate applications or user populations are sought that fit the innovation. Technology-Push occurs when a new technology is invented that people do not realize they need or desire.

When a technology-push occurs, when internal development comes up with a patent or a technological device, which has a high novelty character for the enterprise. Often, such a break-through innovation is even unknown to the entire industry. In this situation, the break-through

innovation has a potential for high strategic impact, but at the same time lacks internal support and shows clear risks.

Technology Push Model:

Technology-push starts with what easily can be researched and evaluated, address the needs of the atypical user. However, technology-push get locked into one technical solution, also, technology-push is difficult to get into the marketplace alone (without the help of demand-pull) because you have to convince the customer they "need" your product.

Demand-pull:

Technology development that is driven by user needs and requirements (demand), rather than by ideas or capabilities created by the development organization. Developing new products on the basis of market demand rather than on that of company-generated ideas. Demand-pull used to refer to increased demand for a limited supply of goods and services, tending to cause consumer prices to increase.

Model of demand-pull:

Demand-pull look at needs that are easily identified but with minor potential and continue to change the definition of the "opportunity" and "miss the opportunity." However, demand-pull lacks a champion or "true believer."

The relationship between demand pull and technology push:The thing is, demand-pull represent market potential. How much demand is pulling the whole industry, how much market potential there will be. Technology push represents technology innovation. However, these two different theories were there to complete each other. Even though in the technology driving industry like Microsoft, technology innovation still very hard to drive the market like market potential does.

The best example of this is Microsoft "house of future", in this Microsoft new technology innovation; the "house of future" has a lot of different function. According to the Milwaukee Journal Sentinel, Microsoft "technology innovate" most of the things we seen in life with their special technology to create this house of future, Microsoft maintains this "home"--the address listed on that front-door screen notwithstanding, it's just a series of rooms in Building 33 on the company's campus here--to show what "might" be possible five to 10 years from now. Even though the technology driven company like Microsoft, the company still admitted that The basic idea behind the Microsoft Home is personalizing a dwelling so it responds to its occupants and customer's tastes--"making things mine," said John O'Rourke, senior director of Microsoft consumer strategy division.

This proved that only technology innovation (technology push), the product might not be accepted by customers, and then, this kind of product just a "dream." A lot of "invention" disappears due to this kind of problem. Only with assessing market potential, technology innovation will bring its use to full play.

4. IMPORTANCE OF MARKET POTENTIAL WHEN INNOVATING THE TECHNOLOGY

Technology innovation is by definition a very risky business and it is clear that a strong public support is needed to foster the early stages of an innovation. When a company trying to link the market potential and technology innovation, there are some criteria are very important and need to be considered:

Whether the innovation which you have been developing (or plan to develop) will receive its widest distribution and use if it is in the public domain and freely available to any interested party, or Whether it would be better to license a business firm that will actively market it, making a profit from the market that is then developed. These are not such straightforward alternatives, as they might seem.

There may be a broad market for the innovation, with several "niches" that match different manufacturers' product lines. It might be appropriate to enter into several licenses with different firms, licensing the product to each one specifically for the kind of application that matches their business. There may be a thin, but clearly defined market for the product.

If the product is clearly related to the product line of one firm, and the ratio of start-up costs to estimated sales within a particular company is favorable, the firm might be interested in being licensed to handle the product. The firm will be in a good position to use existing channels to disseminate information about the product, and they are most likely to provide the follow-up support that may be necessary to see to it that the rehabilitation clients are well served. There may be a potential market, probably a small one, but the costs of tooling are such that the manufacturer cannot justify undertaking the manufacture and marketing of the product. It might be appropriate to consider requesting the evaluation of the product.

The product may not be appropriate for the general market but rather is aimed at certain kinds of users in specific situations. It isn't likely that a manufacturer would be willing to invest substantially in the tooling and marketing costs necessary to bring the product to market. In this situation there is no advantage to trying to restrict access to the drawings, process information, or the prototype itself. The outcome of the research and development effort may have its greatest impact if placed in the public domain, where there are no restrictions on access. Sometimes the quickest, most direct route is through the open publication of the information learned, such as a new and improved technique related to rehabilitation.

The best example of why linking market potential and technology innovation is important, is the example from snicker manufacturing company--Adidas, and Nike. Adidas, one of the most famous snickers manufacture, also the market leader in the 70s, lose almost 10 million dollars revenue from the market when Nike start to make the "Air" series shoes in 1978, and also, Adidas lose its leading position of the market.

Before 70s, Adidas was always the leader of the sinker and sports shoes market. However, in 1978, Nike Company observed the market potential at 70s people are looking for lighter shoes. Also, athlete needs some shoes with more elasticity to help them perform better in the stadium.

When other companies like Adidas were focusing on the "style" of the shoes, Nike decide to innovate their technology and try to put the air cushion in the shoes. In 1978, Nike publishes their first "Air" shoes with real air caution inside the shoes. This kind of "Air" shoes certainly impact the market and "heat" its biggest competitor--Adidas--hardly and deeply. Adidas lose about 10 million revenue around the world and also, Nike get to take over Adidas' market leader position.

It's a big lose for Adidas; however, it's the best example for all the industry. Once the company didn't carefully understand the market potential and didn't improve its technology innovation--just like Adidas, it might lose revenue, market share, and company leading position. Worse, the company might lose all its business.

5. HOW TO ASSESSING MARKET POTENTIAL OF TECHNOLOGICAL INNOVATION

Market potential can be stated in terms of dollars or units. A technological innovation's market potential is affected by economic, socio-cultural, and other environmental force. Marketers must assume a certain general level of marketing effort in the industry when they estimate market potential. The specific level of marketing effort varies from one form to another, but the sum of all firms' marketing activities equals industry wide marketing efforts. Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product. Several factors influence company sales potential for a market segment.

First, the market potential places absolute limits on the size of a company's sales potential. Second, the magnitude of industry wide marketing activities has an indirect but definite impact on the company's sales potential. Those activities have a direct bearing on the size of market potential.

There are two general approaches to measuring company sales potential: breakdown and buildup. In the breakdown approach, the marketing manager first develops a general economic forecast for a specific time period. Next, market potential is estimated on the basis of this economic forecast. The company's sales potential is then derived from the general economic forecast and estimate of market potential. In the buildup approach, the marketing manager begins by estimating how much of a product a potential buyer in a specific geographic area, such as a sales territory, will purchase in a given period. The manager then multiplies that amount by the total number of potential buyers in the area. The manager performs the same calculation for each geographic area in which the firm sells products and then adds the totals for each area to calculate market potential. To determine company sales potential, the manager must estimate, based on planned levels of a company marketing activities, the proportion of the total market potential the company can obtain.

It is not easy to recognize the potential of an innovation. That is, if, for example, a new technology came along, it is not always easy to understand the concepts that underpin each component of the technology and the relationships among the components. Nor is it always easy

to understand how linking these components would result in a lower cost or a differentiated product or in an entirely new product that customers want.

We attribute these difficulties to two factors. The first is the uncertainty that often plagues, innovation, especially in its very early stages. There is usually a lack of information and of clarity as to exactly what technologies will go into the product or service or what customers want. Firms must collect and process information to understand the rationale behind the innovation and its applications. This leads to the second reason for the difficulties in recognizing the potential of an innovation: the way firms collect and process information.

Recognizing the potential of an innovation consists of two parts: (1) understanding the rationale behind the invention and what it takes to commercialize it and (2) recognizing the different applications to which the new product or service can be put.

Rationale behind an innovation:

Understanding the rationale behind an innovation consists of determining just what the components (and the core concepts underlying them) that go into the product are, and how they are linked together to deliver the new low-cost or differentiated features to customers. For a firm facing an innovation, understanding the rationale behind it may involve asking the question: can the new mousetrap be built using the new knowledge?

6. APPLICATIONS

The other part of recognizing the potential of an innovation is determining the applications for the new product. That is, answering the question: will the new product be used in new markets as well as in existing ones? For example, will transistor radios only allow the innovator to sell to the home where vacuum tube radios have done well so far, or will they create a new market in portable and car radio? There are three categories of such applications. In the first, the innovation replaces an old solution for an old problem, because it has either a lower cost or better features than the old innovation.

In the second category, the innovation solves an old problem as well as new one(s). for example, the personal computer replaced the typewriter as a product to type document and also proves valuable in other applications, such as document storage, electronic distribution, electronic merging, editing, and processing. Since the innovation solves old problems and a lot more, existing marketing competences may not be enough to exploit the full potential of the innovation.

Finally, the innovation can have a complete new application. In that case the market knowledge and the relationships that the firm had accumulated in serving the old application may not only be useless, but may actually constitute a handicap. For example, disk drive manufactures who supplied makers of mainframe computers with 12-inch disk drives had difficulties adopting 8-inch drives early. One reason for this failure to adopt early was that 8-inch drive manufactures worked hard to satisfy the needs of their mainframe customers who, early in the life of the disks, had little use for 8-inch drives, which were better suited for minicomputers than for mainframes.

First mover's advantage:

Why is accessing market potential and technology innovation that important for the company? Most of reason is because of the first mover advantage. Just like the example mentioned before, Nike Company has first move advantage when it publish its "Air" series of shoes. Company, which could sense the market potential and try to made the technology innovation in the first place (faster than others) usually could have the first mover advantage.

Another first mover advantage example is MedicAlert International Foundation. MedicAlert's famous emblem and patient medical history data service is the biggest and the best of United States. Since the founder realize there is no other way like a MedicAlert bracelet could efficiently let the patient get the best treatment when a lose conscious patient was send to emergency room. Even though its not a high technology innovation, however, it's still a technology innovation for people who needs emergency treatment and could not provide his/her medical history. Especially in today, a lot of people taking different medicine for different reason such as health issue, latest medical treatment. Making this kind of bracelets at that time. Now, when the government talks about National Data Registry, MedicAlert would have the first mover advantage.

First mover advantage (FMA) refers to the potential competitive benefits gained by being the first (and sometimes early) entrant into a new product market area. There are many potential benefits to being the lead entrant in a new, munificent market area.

Market power:

By being first, the company can build an installed base of customers. If there are any switching costs involved with the product or service, this base can act as a cash cow revenue source, to aid in competing and provide opportunities for expansion or scaling not available to later entrants. The early base of customers can also establish the company's product/service in the mind of the market. This presence shapes the expectations of new customers in a direction beneficial to the first mover.

The first mover can also lock in the most attractive supplier relationships, distribution channels, and market segments. One of the reasons why it is difficult for any new cereal producer to gain entry into the market is that the incumbents control shelf space in the grocery stores. The control of this distribution channel is a key barrier hindering later entrants from gaining access to this market.

Industry guidance:

The first mover can guide the direction of the new market by establishing formal industry leadership in the new area through patents and copyrights. The company can also establish informal leadership through the establishment of standards followed in the industry

Organizational advantages:

Early entry allows the organization to build capabilities such as technical knowledge, customer knowledge, or process knowledge before other organizations are able to do so.

Image and reputation:

One important motivation for innovation is that consumers will identify the firm with creative innovative ideas. Rather than a pejorative "copycat" image, the firm may be seen as a "cutting edge" innovator. It is hard to argue with the positive benefits of a strong reputation.

Brand loyalty and switching cost:

Early entrants may gain advantages in loyal customers who are unlikely to try competing follower products. If switching costs are involved in the use of new technology, the first entrant to a market benefit because consumers who adopt the product would have to incur a cost to use a competing product. This means that later entrants must offer a discount to the first mover's installed base or else expect customers to eventually switch to the entrants newer technology. Either way, entrant profits are eroded by the difference between what customers would be willing to pay and the switching cost to induce the change.

Learning curve:

First moving companies will receive real life feedback earlier than competitors. This information is essential and from feedback is learning curve able to start.

Patent protection:

As an early entrant, it can quick to build a strong patent base and to develop a thicket of patents around not only the core product but also the processes by which useful products were manufactured.

7. CASE STUDY: INTEL'S MICROPROCESSOR INTEL

Intel Corporation. The Group's principal activities are to design, develop, manufacture and market computers, networking and communication products. The Group operates in three segments namely Intel Architecture, Wireless Communications and Computing and Intel Communications.

The Intel Architecture segment produces microprocessors and related chipsets and motherboards based on the Intel NetBurst(TM) micro architecture (Pentium 4 processor) as well as the P6 micro architecture (Pentium III processor). The Wireless Communications segment provides application processors and cellular baseband chipsets for cellular handsets and handheld devices. Actually, the wireless communications segment is a very good example for assessing market potential and technology innovation. The market demand (market potential) on wireless communication is growing, all the technology based companies like Intel or Cisco focus their technology innovation on this big market try to give this market the best solution.

The Intel Communications segment makes Ethernet connectivity products, embedded control chips and optical products. The Group's foreign operations are in Europe, Japan China, Taiwan and the Asia Pacific. Architecture business accounted for 83% of 2002 revenues; Communications group, 8%; Wireless Communications and Computing, 8% and All other, 1%.

Any way people phrase this company; Intel is by far the world's top semiconductor maker. Even though archrival AMD has sometimes eaten into its market share, and while some of its diversification efforts have stalled, Intel still makes several times as much money from chips as do any of its rivals. Though best known for its Pentium and Celeron microprocessors--about four-fifths of all new PCs have them--Intel also makes flash memories (where it has slipped from its former #1 spot) and embedded semiconductors for the communications and industrial equipment markets.