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The Disruptive Transistor Radio

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The Disruptive Transistor Radio

The Disruptive Transistor Radio

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  • 1. JEALOUS of herTransistor Radio
  • 2. Christian Sandström holds a PhD from ChalmersUniversity of Technology, Sweden. He writes and speaks about disruptive innovation and technological change.
  • 3. Radios used to beFURNITURE
  • 4. They were big and beautiful…
  • 5. … And stood in the living room…
  • 6. ”At thedearestplace inYourHome….”
  • 7. And the radios were sold in special stores…
  • 8. In 1955, a company called Tokyo Tsushin Kogyo introduced a Transistor Radio
  • 9. It was named SONY
  • 10. The ’furniture radios’ used Vacuumtubes, and therefore they were big and demanded a lot of energy.
  • 11. In order to sell transistor radios, Sony had to create a new channel. The Radio stores made money on repairing furniture radios and were therefore not interested in selling small, cheap transistor radios which did not generate service revenues.
  • 12. Sony dealt withdiscount storeslike Woolworth which did not have any service departments.
  • 13. The Transistor Radios were smaller,cheaper and demanded less energy…
  • 14. The ’SONY’ became a great successand therefore Tokyo Tsushin Kogyo changed its name to SONY
  • 15. Initially Transistor Radiosdid not threat the big radios,simply because it prospered in a new market.
  • 16. It was a New Market Disruptive Innovation, aproduct that would prosper in a new market and then later on invade the established market.
  • 17. Let’s take a look at the marketing of transistor radios…
  • 18. Home transistorAn ideal, portable, ’second radio’ and for your summer house
  • 19. A Beach Radio!
  • 20. Look at the names!It’s a lifestyle product!
  • 21. Auto Radio – it’s anew application!
  • 22. LUXORTravel Radio
  • 23. None of them focus on Good Sound!
  • 24. The reason isvery simple…
  • 25. Compared to theold, big radios, thesound wasn’t good.
  • 26. But the sound was GOOD ENOUGH to enjoy.
  • 27. Now let’slook at themarketing of big radios…
  • 28. ’If You want good sound - Ask for Radiola’
  • 29. So, the established Radio companiesfocused on sound, sound and sound…
  • 30. … While transistor radiosprospered in new markets.
  • 31. … In 1957 they were smallenough to fit into the pocket.
  • 32. In the 50’s and 60’s the market for transistor radios exploded!
  • 33. Virtually everyone had a transistorradio and it became a cult product.
  • 34. The Beach Boys released a songcalled ’Magic Transistor Radio’.
  • 35. Benny Hill, the famous English entertainer wrote a song called Transistor Radio in 1961 (Listen here):
  • 36. “My baby’s got a transistor radio She takes it everywhere we go She takes it when we go out a-walking Even to a movie show”
  • 37. “Well nowjust last night,in the pale moonlight I asked her for a kiss But instead of hearing her whisper sweet words of love All that I could hear was this…”
  • 38. “I’d like to take hertransistor radioAnd throw it inthe deep blue seaI’m so jealous of hertransistor radioCause it takes hermind off me“
  • 39. The Transistor Radioswere so popular that by1959 there were about 12 million in use…
  • 40. Soon, there weremore of them than there werehouseholds in the United States!
  • 41. And well, as the sound quality improvedgradually there was no reason any longer to buy a furniture radio…
  • 42. … All of a sudden, it was impossible to sellbig radios on sound, sound and sound…
  • 43. Transistor Radios were now cheaper, portable, consumed lessenergy, and had a sound which was as good and soon even better!
  • 44. The furniture radios now left the market rapidly and thedisruption was accomplished…
  • 45. And with these radios, many specialRadio Stores also left the market, because there were no radios to repair…
  • 46. Sony was initially not regarded as athreat, since they satisfied a market that had not existed previously.
  • 47. Sony targeted Non-consumers and created a huge market!
  • 48. And who would regard Non- consumers as a threat?
  • 49. Some estimates suggest that there are 7 billion transistor radios in use today.What a huge New Market Disruptive Innovation!
  • 50. So, this story tells us that:By targeting Non-consumers, huge markets can be created and disruptions may occur later on.
  • 51. And it reminds us of the crucial question...
  • 52. … What is GOOD ENOUGH?
  • 53. Image Attributionshttp://www.flickr.com/photos/96979971@N00/110830957/http://www.flickr.com/photos/danailaadrian/1311477408/http://www.flickr.com/photos/simplylafra/2387899450/http://www.flickr.com/photos/44124324682@N01/2166509550/http://www.flickr.com/photos/roadsidepictures/315468558/http://www.flickr.com/photos/roadsidepictures/2221686905/
  • 54. Photos taken at: Radiomuseet i Jönköping:http://www.radiomuseet.com/ Thank You!
  • 55. Find out more:www.christiansandstrom.org