The proliferation of LED and Plasma raised the bar on quality consumer displays. No longer do we have to rely on bulky CRT displays that occupy an entire desk. Instead, many are vying for sleek, minimalist LCDs for our computers or large, flat, wall-mounted Plasmas for home entertainment. Surprisingly though, a new emerging technology is changing what thin means when it comes to displays. This new technology called Organic Light Emitting Diodes (OLED) allows displays to be as thin and as flexible as paper.
The applications of OLED are endless. Portable and wearable displays, televisions, military applications and advertising are just some of the ways that OLED can be used. It's lightweight, flexible more energy efficient. Most of all, it is theoretically cheaper and easier to produce. For many major consumer electronics producers, this is the next major step in display technology.
Despite already being popular in current versions of cell phones, PDAs and MP3 playeres, here are some potential future uses of OLED:
In Relation to Porter's Five Forces:
To relate OLED with Porter's Five Forces, it is best to choose an industry which is anticipated to use OLED in a major way. This industry is the consumer electronics industry, more specifically the Television Market
Threat of Substitute Products
OLED technology has been around for a few years, but only recently have companies shown prototypes of OLED televisions. By the time it is released to the market, these televisions are predicted to initially be more expensive than current technologies such as LCD and Plasma screens. As well, LCD and Plasma screen prices are significantly decreasing, which might deter the regular consumer from buying an OLED TV when it comes out.
The price advantage of these alternative flat screens have over OLED screens, though, are temporary. Performance wise, an OLED screen is far superior. It produces a greater quality image with a 1000000/1 contrast ratio as compared to LCD's 1000/1; it's image is not distorted based on the angle it is viewed; is more lightweight and flexible; and is more energy efficient since it does not require a backlight to illuminate the screen. The high initial price of OLED is also congruent with any new technology. It's price will decrease once economies of scale are achieved.
The Bargaining Power of Suppliers
A major manufacturing advantage of OLED Televisions is that it requires less parts to assemble. This greatly decreases a manufacturer's dependence on its suppliers. As previously mentioned, OLED doesn't require backlighting, therefore, a dependence on companies such as Tsujiden, Keiwa and Kimoto, which have an oligopoly on LCD panel backlighting. This will be a major advantage for OLED TV producers.
Other manufacturers have also mentioned that OLED are simpler to manufacture in general than LCD and Plasma. Cnet.com mentions that OLEDs will be cheaper to produce than traditional LCDs up to 60%, and that there will be a “definite cost advantage in making an OLED (TV)”.
With its major advantages, OLED will make waves in the consumer electronics industry. In the future, the use of this technology will be expanded to all other uses of a portable display device. Any company in this industry should definitely consider the production of OLEDs if they choose to stay ahead of the game.
Sources:
OLED-Info
http://www.oled-info.com/
Still Waiting for OLED TVs
http://www.news.com/2100-1041-6203556.html?tag=tb
Gizmodo
http://gizmodo.com/gadgets/oled/
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