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Essay text:
Increasing production bases
?» Domestic Firms: low-end market. But they were less competitive in large screen TV.
- small color TV market was shrinking
?» large market size of these product lines facilitated the fast achievement of cost reduction(economy of the scale, learning effect)
Consumer analysis
- only 41% of households had color TV
?» 80% of urban, 28% of rural
?» Low-end market is not a viable long-term. But overall market was still expanding.
- Buying power: expanding both high-ends and low-ends
- Tendency that first image of a product lasted long in the eyes of the consumer...
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