Power Paper - York U
Power Paper
Research Paper
E-commerce and High Technology Marketing: Strategic and Cultural Considerations
MKTG 6525 U
Fall 2005
Submitted to: Detlev Zwick
Submitted by: Jianxiong Guo
Ashley Hegland
Matthew Joffre
Preetham Pillarisetty
Date: November 30, 2005
Table of Contents
Executive Summary 2
Introduction 3
External Analysis 5
Internal Analysis 8
Market Analysis 9
Central Problem 13
Critical Issues 13
Alternatives 16
Alternative Analysis 17
Recommendation 18
Implementation 19
Appendix I 21
Appendix II 22
Appendix III 24
Appendix IVa 25
Appendix IVb 26
Introduction
What is Power Paper?
Power Paper Ltd., founded in 1997, is a leading provider of micro-power source technology, which addresses a growing trend across a wide range of industries towards ultra-thin and flexible micro-powered devices. Power Paper’s patented, thin and flexible energy cells can be adapted to fit the size, thickness and form factors required for the design of any product. These environment-friendly, safe batteries require no metal casing, and can be printed cost-effectively directly onto paper, plastics or other surfaces by standard printing equipment. Based on this technology, the company has developed a number of innovative applications (essentially flexible micro-powered enabled products) for its PowerCosmetics, PowerNovelties, and PowerID product lines, as well as a line of PowerInks for authorized manufacturers (for description of each product, see Appendix I).
Focal Technology
Power Paper’s basic technology is low-cost Thin and Flexible Microelectronics (TFM) energy cells (for purposes of this paper, “batteries”) that:
➢ Can be printed, pasted, or laminated onto virtually any substrate, including paper, plastic, and other media; thereby removing all conventional limitations on a battery’s size and shape.
➢ Can be mass-produced utilizing inexpensive printing processes (potential mass production cost of a few cents). In addition, unlike conventional batteries, Power Paper’s energy cells become less expensive the smaller and less powerful they are produced.
➢ Can be stacked or arranged in side-by-side configurations for greater voltages
➢ Do not require hermetically sealed metal casings
➢ Operate like standard batteries
➢ Have a shelf life of more than two years
➢ Are non-toxic; and
➢ Are environmentally friendly.
To date Power Paper’s cells are not rechargeable (see Appendix II).
Ecology of Technologies
Power Paper’s basic technology can be viewed as part of a system of technologies commonly described as “Printable Electronics”. Our rational is two-fold:
➢ We expect Power Paper’s focal technology to spur new developments and innovations (“Knowledge Spillover”) in “Printable Electronics”. According to Small Tech expert Stephen Casalnuovo, technical staff member at Sandia National Laboratories in Albuquerque, N.M., power remains one of the "outstanding problems" in building Microsystems. Power Paper’s focal technology solves the problem of how to deliver power to micro devices since:
➢ Battery power in Power Paper’s range is required for widespread commercialization of many “Printable Electronics” products
➢ Flexible, ulta-thin batteries are required for widespread commercialization of many “Printable Electronics” products
“Printable Electronics” refers to the use of low-cost, high-speed printing technologies to create electronic circuits and devices. According to its backers, the emergence of high-resolution ink-jet printers and semiconductor inks will:
➢ Result in low production and material costs
➢ Lead to a new generation of electronics products; and
➢ Lead to incremental improvements in many existing products
Products Enabled by the “Printable Electronics” Ecology of Technologies
Power Paper’s basic technology combined with other enabling technologies in the “Printable Electronics” ecology of technologies, is expected to lead to the commercialization or incremental improvements in the following range of products:
|Product ID/RFID |Disposable computers |Luggage tags |
|Flexible displays |Photovoltaic |Electronic barcodes |
|Intelligent packaging |Tracking/inventory tags |Smart cards |
|Sensors |Cosmetics |Toys |
External Analysis
PEST
Power Paper operates within the Battery Industry and focuses on developing products in four main divisions - PowerNovelties, PowerCosmetics, PowerID and PowerInks - to take on the challenge of commercialization. The company realized that the only way to create demand for this new generation of batteries was to develop a set of products that used them. This industry is very susceptible to external changes and theses changes could become either an opportunity or a threat to any industry player. A company’s ability to respond effectively to these changes will require flexibility to adapt to the market volatility and the ability to anticipate future trends. The following is a discussion of some of the external variables affecting this fast-changing market.
Political factors such as environmental policies do have a great impact on the battery industry, especially in the overseas market, which offers more uncertainties regarding the existing regulations. Also, the economic dimension is of the utmost importance to this industry. The products and services provided by the battery industry are considered commodities; therefore, their demand is highly correlated with the health of the economy.
Additionally, the socio-cultural dimension affects the industry at different levels depending on the characteristics of the target customers. Society’s trend to accept and embrace new environmentally-friendly technologies in consumer goods will help Power Paper’s ability to achieve profitable operations. Finally, technology plays a vital role within the industry. This role can be in the form of product invention or process innovation. Invention can take the form of substitutes of current technologies or an improvement to current technologies. In addition, process innovation can have a significant impact on costs as well as the speed to market.
In summary, the battery industry is dynamic, with a high potential of being affected by changes in the external environment. Therefore, it is recommendable that companies within this sector strive to be flexible and visionary to facilitate change, and to create opportunities to commercialize new products while promptly diminishing threats.
Competitive Analysis (Porter’s 5 Forces)
The current state of the battery industry can be analyzed in five dimensions: supplier power, consumer power, substitute availability, entry barriers and rivalry dynamics (Appendix III).
Supplier Power: Even though the nature of the battery industry calls for mass production, plenty of suppliers are able to mass-manufacture the material. This analysis suggests the industry has low supplier power.
Consumer power: The battery industry has more capacity for actual demand and is in a buyer’s market. Thus, consumers have considerable power over the industry.
Substitutes: The product the industry offers can be classified as a commodity item in the sense that there are many battery firms willing to satisfy the need. Alternatives range from button cells to LiTe batteries; these factors make the demand for Power Paper very elastic.
Barriers to Entry: The battery industry as a whole is heavily capital intensive, requiring considerable resources to build and operate manufacturing facilities as well as to research and develop new products. The industry is both capital intensive and technology intensive. These factors make it very difficult for new firms to enter the market.
Rivalry among competitors: Power Paper must also deal with competition, firstly from existing power sources - particularly button cells - and secondly from the micro-power products now being developed. Many big firms in the industry are continually developing new products. Rivalry among competitors can be seen as very high. (See appendix IVa and IVb) for competitive analysis.
In summary, the industry can be characterized as highly developed with few giant competing firms, which may be characterized as an oligopoly. The barriers to entry are considerable, making it unattractive for new firms. The potential for new markets is considerable; however, the industry is experiencing change in the sense that demand for its products are shifting to more environmentally-friendly products. As the market undergoes changes, firms need to develop strategies that will exploit opportunities and minimize threats. At present, firms within the industry are focusing both on product diversification and market expansion, and they are using mergers and acquisitions as well as organic growth as major corporate strategies to achieve this market expansion or product diversification.
Implications of External Analysis
After analyzing the industry, it has been determined that the Key Success Factors for this industry are:
▪ The existence of proprietary technology,
▪ Brand Equity,
▪ Market Penetration and,
▪ The establishment of economies of scales.
Internal Analysis
SWOT
The real strength of Power Paper is its core micro-power source technology innovation - a new generation of ink that can be used to make micro-power cellular batteries using the traditional silk-screen printing process. These patented batteries are thin and flexible and can be printed in virtually any size or shape, enabling producers to create goods where the battery is designed around the product and not the other way round. Aside from its flexibility, the battery has many other advantages over traditional batteries. For example, it is much cheaper, costing just a few cents each. It is also non-toxic and fully disposable.
The major weakness is that Power Paper does not generate sufficient demand. The company realized that the only way to create demand for this new generation of batteries was to develop a set of products that used them. Up to this point, the company has not been able to self-fund through its current product offerings. Power Paper chooses a high risk diversification strategy: it is not usual for such a small company to concentrate on four areas of business. Even so, these are very different sectors, and focus is essential at this delicate stage. This can be deemed as a threat. The core micro-power source technology can apply to various sectors. The environmentally-friendly trend towards batteries also provides lots of opportunities for the company.
Capabilities & Core Competencies
Although it is difficult to ascertain, Power Paper appears to have various capabilities, such as R&D, marketing (possibly), and finance (ability to acquire financing). However, the core competencies are its human capitals and its patented micro-power source technology.
Market Analysis
Network Analysis
One of Power Paper’s greatest challenges is expanding its network ecology. Indeed, this limited network is a major reason for the slow uptake of the technology. The following is a closer look at the TFM battery network ecology:
Producer network – The producer network of this specific kind of printable ink battery is small. In fact, Power Paper is currently the only producer of this kind of technology.
User network – The user network of Power Paper’s printable battery technology is small to medium. The reason for this is because there are numerous printable-enabled products, such as RFID (PowerID), cosmetics (PowerCosmetics), electronic cards, and other electronic tags, etc…; all of which have a varying number of users. Electronic cards have a greater number of users than PowerCosmetics, for example. Therefore, taken as a whole, it could be argued that the user network for printable batteries is small-medium.
Complementary network – The complementary network for Power Paper’s printable ink technology is small. An example of a critical complementary network at the battery-assisted RFID product level, for example, would be companies that build the machines that effectively read battery-assisted RFID. Without these complementary networks, Power Paper’s technology is not attractive to customers and will struggle to gain market acceptance. Therefore, from a marketing perspective, achieving penetration within the complementary network will be critical to the technology (and company’s) success.
It should be noted that existing passive RFID players currently have a big advantage here. For example, if active RFID is the way of the future, would most reader machines not be focused on this technology instead of on Power Paper’s battery-assisted RFID?
Even if the reading machines could read Power Paper’s battery-assisted RFID’s, the reader’s used would be specifically designed for either passive or active RFID. Therefore, they would not be the optimal technology complement (in terms of efficiency) for Power Paper’s technology. This would imply that Power Paper needs to work with at least one manufacturer of readers to ensure that it can be optimally configured for a Power Paper battery-assisted RFID tag. This becomes an issue of strategically managing the value chain and must also be considered in strategic market planning.
Characteristics of the Emerging ‘Printable Electronics’ Market (Moore’s Chasm)
From a Moore’s Chasm perspective, commercialization of the “printable electronics” market is in its infancy and would on a market basis be at something less than the innovator level; however it will likely be there soon (see Fig. 1). Current successfully commercialized applications have been limited to simple items such as electronic greeting cards. Clearly, there has been a lag between the invention of the basic technologies and the possibility for application. However, given the amount of dedicated resources, combination of innovative technologies, and level of interaction among emerging market participants (major conferences are held regularly), significantly more commercialization is expected within the next 24 months.
Fig. 1
Customer Adoption: Moore’s Chasm[1]
Implications for Marketers
It could be argued that Power Paper’s focal technology meets the definition of “radical”: new technology creates new market, R&D invention in the lab, and superior functional performance over "old" technology. However, we contend that from an end user perspective the ultimate end products will be viewed as incremental improvements to existing products for which a cognitive association has been established in the eyes of the consumer (at least for the first wave of commercialized products). Our conclusion can be supported by the manner in which market participants tout their technologies (low-cost, smaller, things that are prohibitively costly will not be for long). Since most expected applications for the first wave of commercialized products are generally seen as incremental improvements, price will be a major factor in the successful commercialization of products in this market. Even at this early stage in the development of the market, “low cost” seems to be a common message when touting the emerging technologies. In addition, marketers will be challenged to justify the costs of the incremental improvements to end users and products will need to be clearly differentiated from competitive offerings if they are to justify a higher price. Finally, although most products will be incremental improvements to existing products, marketers will be challenged to diminish buyer anxiety about the reliability of the products since they effectively incorporate high technology.
Power Paper’s Perception of its Technology VS Customer’s Perception of its Technology
Breakthrough VS. Incremental - Power Paper probably thinks of its ultra-thin and flexible energy cells as a breakthrough, but the market for this technology is uncertain; so Power Paper can’t be sure about what the customer’s perception of this technology might be. In this respect, there may be a conflict in perception between the supplier’s perceptions (Power Paper) and the customer’s perceptions (see Fig. 2).
Fig. 2
Supplier VS Customer Perceptions of Technology
In this case, there may be a “mismatch” in perception, and as a result, Power Paper must be mindful of this tension when marketing its various product offerings.
Central Problem
Power Paper must determine the best strategy to market its Thin and Flexible Microelectronics energy cells so that the technology gains acceptance in the marketplace.
Critical Issues
It is believed that the “Printed Electronics” market can be labeled “high tech” because, in addition to the significant level of innovation involved, it is characterized by Market, Technological, and Competitive uncertainty.
Market Uncertainty
Generally, it is uncertain whether or not there will be market acceptance of TFM energy cell technology. This is still an emerging technology and as is the case with most high technology innovations, the majority of customers will resist the new technology until it has been more thoroughly tested in the marketplace. In addition to the relatively slow acceptance of TFM energy cells, market acceptance of “battery-assisted” RFID is also uncertain right now. This is largely due to the fact that Power Paper is the only “battery-assisted” RFID in existence (as described in the section on Producer Network). However, market acceptance of “passive” RFID technology is now widespread and growing rapidly. This is largely due to the impact of Wal-Mart’s acceptance of the technology, along with its strong insistence that all of its suppliers switch over to the most up-to-date RFID technology (EPCglobal Generation 2) as well. In fact, Wal-Mart Stores Inc has published the first piece of quantifiable data showing the benefits of its RFID rollout, which is currently one of the worlds largest. “The study, which Wal-Mart stressed, was independent, found a 16% reduction in out-of-stocks and that out-of-stock items with RFID were replenished three times faster than comparable items using traditional bar codes. Wal-Mart also saw a 10% reduction in manual orders, which means a reduction of excess inventory.”[2] This type of quantitative evidence, along with the support of powerful retailers is very helpful in assuring market acceptance for a new technology. That being said, this might be a great opportunity for Power Paper, since its PowerID products have a much greater chance of expanding if the entire RFID technology expands itself. Power Paper’s marketing challenge then, will be to determine how best to gain market acceptance and then penetrate the market quickly in order to establish strong brand equity.
Technological Uncertainty
At this time, it is unclear if TFM energy cell technology will be the “next” battery technology innovation or not. We can draw an example from RFID to illustrate the current technological uncertainty around PowerID. As mentioned, there is now quantifiable evidence suggesting that passive RFID leads to operational efficiency. In addition, an immensely powerful customer in the retail industry, Wal-Mart, endorses it and influences its suppliers to adopt the technology. Unfortunately for Power Paper, battery-assisted RFID does not seem to have this kind of solid research behind it, nor the powerful customer backup. Power Paper markets its PowerID product as a highly reliable one (see Fig. 3), but it is unclear how the battery-assisted RFID technology is perceived, in terms of its reliability, in the marketplace; and this is ultimately the most important. Fig. 3[3]
[pic]
Competitive Volatility
As is the case in many high technology markets, it can be argued that Power Paper operates in a (hyper) competitive environment. Because TFM energy cells have not been fully accepted into the marketplace, competition from other existing and emerging technologies (i.e. nano technology, lithium batteries) is always a potential threat. In this respect, Power Paper faces great competitive volatility. For example, as is illustrated in Fig. 3 above, active RFID is currently more expensive then both battery-assisted and passive RFID. What happens to the attractiveness of PowerID’s value proposition if there is a technological breakthrough for active RFID, which drives down its price? Clearly, because active RFID’s are more powerful than battery-assisted RFID, PowerID would be instantly faced with a more challenging competitive environment. This volatility, which is common place in high tech markets, will always be a reality and challenge for Power Paper and its marketers. This competitive volatility also informs marketers of the importance of brand recognition, since brand may be one way to defend against these competitive threats.
Alternatives
Taking into consideration the three critical issues faced by Power Paper in this highly volatile market, we have proposed the following three strategic marketing alternatives:
1. Market TFM and energy cells generally as a radical innovation and priced at a premium: If Power Paper perceives this technology to be a breakthrough technology, then they may choose to market it as such, creating buzz around the technology as much as possible, and possibly selling it at a premium price. Therefore, the brand platform will be that of a highly innovative product that fundamentally changes the nature of the battery market.
2. Focus marketing efforts specifically on RFID and market it as an incremental improvement; therefore priced almost as low as passive label: With the knowledge that RFID technology is becoming increasingly accepted, Power Paper could focus on its PowerID product as a vehicle to increase acceptance of it ultra-thin microelectronics energy cell technology. The ultimate goal of focusing on the RFID would be to penetrate the market as deeply as possible in hopes that the technology (printable batteries) crosses the chasm and becomes the “next” battery technology. Then, Power Paper could focus more on selling the PowerInks manufacturing/licensing offering. In terms of marketing PowerID, the products would definitely be priced low, as PowerID is perceived as an incremental improvement.
3. Focus marketing efforts generally on all “printable electronics” enabled products; some products “radical”, others “incremental” and priced accordingly: There are many possible “printable electronic” products and Power Paper could focus its R&D efforts on bringing more of these to market. This might increase the exposure of Power Paper and improve chances for its focal technology to gain acceptance into the marketplace.
Alternative Analysis
Decision Criteria
In an effort to effectively evaluate the proposed alternatives and select the best recommendation, the following four criteria have been selected:
1. Speed to market: This suggests that it is important for Power Paper’s focal technology to penetrate the market quickly, as this will enable it to gain brand equity and to position itself favorably against incoming competition
2. Brand awareness/recognition: Brand awareness will be very important for success, particularly as it may be a good way to defend its position against competition
3. Protect market position from alternative (emerging) technologies: Again, this alternative looks at how effective the proposal is in terms of its ability to position the technology in a way that is less vulnerable to competition
4. Market acceptance of TFM and energy cell technology: The technology must, most importantly, be accepted in the marketplace if it is to succeed. Because this is the most important factor in determining the success of Power Paper’s technology, we have given it a double weighting to represent its significance.
The following table measures the three strategic marketing alternatives in relation to our selected criteria:
Recommendation
The chosen recommendation is to: focus marketing efforts specifically on battery-assisted RFID (PowerID) and market it as an incremental improvement; therefore pricing it almost as low as passive label. Although we are currently uncertain about how Power Paper prices its products, our recommendation is for Power Paper to focus its marketing efforts on PowerID so that Power Paper can increasingly gain acceptance in the growing RFID market. The idea is to flood the market as much as possible (which is why pricing must be low) and increase use of the company’s Thin and Flexible Microelectronics (TFM) technology; ultimately establishing a strong brand name for itself. This will increase the network and greatly add value to the company. Likely, customers think of this RFID technology as an incremental innovation. (e.g. Toyota – incremental, Wal-Mart – incremental), so they would expect it to be priced accordingly (incremental at most, very little premium). As mentioned, establishing a stronger complementary network will be critical, so establishing a partnership with a manufacturer of battery-assisted RFID reading machines will also be important. The reason that we feel the strategy to focus on PowerID over the other technologies is first because the RFID market is growing, and second, because this focus will allow it to better penetrate the market and establish a brand name; both key success factors. The ultimate goal of this recommendation is to establish acceptance of the technology in the market. If that happens, then Power Paper can change its focus to the more lucrative sale of its PowerInks manufacturing/printing product.
Implementation
The implementation of this recommendation will be largely dependant on the marketing mix; product, price, place and promotion.
Product: As mentioned the product to focus on in the short term is PowerID (battery-assisted RFID). Power Paper can talk to current channel partners, potential buyers, potential end user’s, and the “influential” people. Understand functionality requirements and add them or partner with others to add them. Understand the buying process and ensure that the product has whatever features need to be in place to tilt the decision to Power Paper’s product (as it does hold a distinct place in the market).
Price: Very critical to the success of the marketing efforts will be price. A relatively low price, even as low as passive RFID is recommended to encourage switching over to the Power Paper RFID product. This follows the logic that PowerID is an incremental product innovation.
Place: The product should be marketed directly to retailers (end-users) and to complementary networks. IBM is an example of a manufacturer with whom Power Paper can approach and establish a partnership to increase its network ecology. Additionally, in the eyes of customers, this technology can be positioned as a “stop-gap” to active RFID. For years, there has been talk about the promise of active RFID and the improvements that it will make on passive RFID. However, these promises have yet to materialize and PowerID can be positioned as an effective transition zone and/or proven replacement for passive RFID.
Promotion: Numerous promotional activities can become part of the integrated marketing communications plan. Some suggested places to conduct promotional activities include: trade shows, videos, supply chain trade journals, e-media strategy, RFID journals, wall street journal (if you want to hit the CEO as opposed to the technical folks). Communication will be critical to the success of PowerID. Power Paper must establish the necessary relationships and be sure to understand what the market is demanding from this technology; this will drive R&D as well as its marketing communications program.
Appendix I
[pic] [pic]
[pic] [pic]
PowerID: printable battery enabled RFID
Power Cosmetics: The company's two product lines: PowerCosmetics™ Vitalizers and the PowerCosmetics™ Enhancers are used for a variety of at-home, consumer skincare applications. “These unique, thin, flexible, disposable patches are intended to actively rejuvenate the skin and/or enhance delivery of cosmetic formulations onto the skin”[4].
PowerNovelties: technology empowering design (there is no detailed information on this product as yet).
PowerInks: “The ability to produce printable, environment-friendly energy cells on a massive scale is a giant step forward for microelectronics. Power Paper enables authorized manufacturers to purchase a complete Power Paper production line, capable of producing millions of low-cost cells per year, as well as a license to our manufacturing know how and technology as well as a license to distribute Power Paper's energy cells. Manufacturers can now develop and produce high value and high volume items in-house, backed by the full-service and technical support of Power Paper”[5].
Appendix II
Chemical Composition of Power Paper’s Energy Cells
The Energy Cells (batteries) have a cathode on one side, an anode on the other side, and an electrolyte core that converts chemical energy to electrical energy in a cyclical process. Power Paper’s energy cells are composed of Zinc and Manganese Dioxide based cathode and anode layers fabricated from proprietary ink-like materials.
With a capacity of 20mAh (milliamps per hour) per square inch, these batteries are designed for applications with low power requirements:
.
Power Paper's Standard Cells
|Power Paper |STD-1 |STD-2 |STD-3 |STD-4 |
|Electrical Characteristics |
|Nominal Voltage |1.5 V |1.5 V |1.5 V |1.5 V |
|Nominal Continuous Current |0.5 mA |1 mA |0.5 mA |0.03 mA |
|Nominal Capacity |15 mAh |30 mAh |30 mAh |13 mAh |
|Nominal Internal Resistance |15 Ohm |15 Ohm |15 Ohm |50 Ohm |
|Nominal Peak Pulse Discharge Current |15 mA[1 msec] |30 mA [1 msec] |15 mA[1 msec] |6.25 mA [1 msec] |
|General Characteristics |
|Chemical System |Zinc manganese dioxide|Zinc manganese dioxide|Zinc manganese dioxide|Zinc manganese dioxide|
|Outline Dimensions |39 mm |55 mm |39 mm |29 mm x 23 mm |
| |[pic] |[pic] |[pic] | |
| | | | | |
|Thickness |0.6 mm (typical) |0.6 mm (typical) |0.7 mm (typical) |0.7 mm (typical) |
|Allowable Bending Radius * |25 mm |25 mm |25 mm |25 mm |
|Operating Temperature Range |-20ºC to +60ºC |-20ºC to +60ºC |-20ºC to +60ºC |-20ºC to +60ºC |
| |(-4ºF to +140ºF) |(-4ºF to +140ºF) |(-4ºF to +140ºF) |(-4ºF to +140ºF) |
|Shelf Life |3 years |3 years |3 years |3 years |
Appendix III
Porter’s 5 Forces Analysis (TFM and energy cells)
|The bargaining power of customers |
|Very Few manufacturers. |
|Developing Technology. Not too many Buyers (Lower Buyer Volume) |
|Few Buyers with significant market share - Buyer are concentrated |
|High Bargaining Power of Customers |
|The bargaining power of suppliers |
|Power Paper cells are composed of two non-toxic, widely-available commodities: zinc and manganese dioxide. The Company couples its |
|ultra-thin, flexible power source with complementary thin, flexible polymer displays, integrated circuits, and packaging |
|technologies. |
|Widely available raw materials: zinc and manganese dioxide |
|Low Bargaining power of suppliers |
|The threat of new entrants |
|High capital requirements |
|Low barriers to entry |
|Threat of new entrants very high if technology becomes mature |
|The threat of substitute products |
|Very Few manufactures but the substitute products do exist (e.g. lithium batteries, nano technology) |
|buyer propensity to substitute is high |
|buyer switching costs might be high |
|perceived level of product differentiation is low |
|Threat of substitute products high |
|The intensity of competitive rivalry |
|Low barriers to entry |
|Low product differentiation in thin film batteries |
|Hypercompetition for batteries |
|Threat of other technology will result in great competition |
|Intensity of rivalry is very high if the technology becomes mature |
|Intensity of competitive rivalry high |
Appendix IVa
Competitor Analysis – Battery Level
|Infinite Power Solutions |Golden, Colorado 80401 USA |
| |Protective Lithium Ion Conducting Ceramic Coating for Lithium Metal Anodes and Associate Method|
| |The LiTE*STAR Battery can be manufactured in small chip-like formats or flexible formats |
| |depending on the application. A LiTE*STAR microbattery can be integrated with the electronics |
| |in thin profiles occupying less than 1cm2 in total area (less than 10% of the total electronics|
| |package in many applications). |
|Cymbet Corp. |Elk River, MN 55330-1773 |
| |The POWER FAB™ battery system developed by Cymbet Corporation is a truly revolutionary |
| |rechargeable lithium ion cell. It is a flexible thin-film, high energy density solid state |
| |battery capable of providing energy in any available area as a primary or unlimited cycle power|
| |source |
| |The POWER FAB™ battery is an unlimited cycle, flexible lithium cobalt oxide cell that uses a |
| |solid state LiPON electrolyte developed and proven by The United States Oak Ridge National |
| |Laboratories |
|Excellatron Solid State |Atlanta, Georgia 30312 |
| |Thin film solid state batteries are constructed by depositing the components of the battery as |
| |thin films (less than 5μm) on a substrate |
|VoltaFlex |Menlo Park, CA 94025 |
| |VoltaFlex is developing rechargeable lithium and lithium-ion battery components that are flat |
| |and very thin, resembling a sheet of plastic. These flexible power components are based on the |
| |dry solid polymer electrolyte (DSPE) that VoltaFlex has exclusively licensed from MIT. The |
| |resulting batteries utilizing DSPE are expected to operate over a wide temperature range, from |
| |sub-ambient to elevated (> 75 degrees C). |
|Oak Ridge Micro-Energy |Oak Ridge, Tennessee |
| |Oak Ridge Micro-Energy (Tennessee, USA) has developed thin-film rechargeable lithium and |
| |lithium-ion batteries. Characteristics of focal technology: |
| |Fabrication of batteries that are less than 15 micrometers (about 0.0006 inch) |
| |Can be deposited directly onto chips or chip packages in any shape or size; and |
| |When fabricated on plastics or thin metal foils, the batteries become highly flexible. |
| |The batteries may directly compete with Power Paper’s cells where power requirements are at the|
| |high end of Power Paper’s range. As an example, active RFID vs. Power Paper’s limitation to |
| |Semi-Active RFID. In addition, unlike Power Paper’s, Oak Ridge’s battery is rechargeable. |
|Colossus Nano Batteries |Tulsa, Oklahoma |
| |Colossus Nano Batteries is producing the world's smallest battery. The technology wad developed|
| |from research conducted at Tulsa University. Characteristics of focal technology: |
| |You can fit 242 of them across the width of a human hair. |
| |Hype: “They will power miniature devices of the future, also known as Micro Electro Mechanical |
| |Systems (MEMS)”. |
| |These batteries can potentially one day be smaller and less powerful than Power Paper’s. Hence,|
| |they may compete at the low end of Power Papers power range abilities. However, although a |
| |company has been formed, we have found no evidence that anything has been commercialized or |
| |even explicitly pitched by Colossus Nano Batteries. |
Appendix IVb
Competitor Analysis – RFID
|Alien Technology Corp |Moore Wallace RFID labels |RSI ID Technologies Inc |
|Alien Technology produces an extensive line|Moore Wallace sells its RFID labels to |Offering full RFID systems for RFID and |
|of RFID tags and readers, in use around the|between 30% and 40% of so-called compliance|bar-coding including systems design, |
|world in supply chain, brand |program suppliers in the US today |engineering, integration, service and |
|authentication, cold chain management, | |support. |
|asset tracking and other high-value |Most of Moore Wallace's RFID customers are |RSI specializes in process optimization |
|applications. |consumer goods product makers |systems for companies ranging from |
| | |mid-sized to Fortune 500 |
|Alien was the world's first manufacturer of|Moore Wallace has distribution channels for|The sub-15 cent price is only for bulk |
|Class 1 EPC tags and continues to be the |the new labels in Asia, Europe and North |orders of one million or more units. Though|
|volume and cost leader in EPC tags. |and South America |difficult to pinpoint, the average price of|
| | |comparable labels ordered in volume is |
|Available in a range of form factors and |Currently, the company would just |roughly 15 cents to 20 cents. |
|delivered on rolls for a variety of label |manufacture the Gen 2 labels in North |However, by far and away, the bulk of RFID |
|formats, Alien tags are characterized by |America and expects production at its |label orders are in the tens of thousands |
|their high performance as well as their |plants in Asia, Europe and South America at|unit range -- not the one million or more |
|industry-leading low cost. |some future point |needed to get the price break. |
|Developed to fill the gap between shorter |Texas Instruments Inc announced a |One of the only vertically integrated |
|range passive systems and high-cost active |multi-year deal to supply its |manufacturers of RFID labels in the US |
|RFID systems, Alien BAP tags and readers |next-generation RFID silicon to smart label| |
|support cold chain management, asset |maker Moore Wallace. |When ordering just tens of thousands of |
|management and other demanding applications|Under the deal, TI becomes the primary |units, the price more than doubles. |
|requiring reliable long range RFID |supply of ultra-high frequency EP Gen 2 | |
|functionality. |flexible inlays for new Moore Wallace RFID |This lowest-priced RFID labels in volume |
|From food providers and long distance |labels. |orders on the US RSI announced an |
|carriers to the U.S. Department of Defense,| |unprecedented 14.9-cent price for its |
|customers use Alien's BAP technology to | |finished RFID labels, which are ready to be|
|reduce costs and enhance consumer safety | |printed then slapped on boxes of goods. |
|and satisfaction. | | |
|Alien is partnered with industry leading | | |
|platform providers to optimize the | | |
|integration of RFID solutions with | | |
|enterprise software and hardware | | |
|infrastructure, and other related business | | |
|such as: CCL, Monarch Paxar | | |
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[1]Moore (1991), Crossing the Chasm
[2] Datamonitor – Bill need full reference
[3] Power Paper website,
[4] Power Paper website:
[5] Power Paper website:
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Power Paper’s Focal Technology
Lap Top
Nano Technology
Active RFID
IPOD
Shadow
Mismatch:
Breakthrough
Incremental
Delusion
Mismatch:
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