E Ink Case Study

2020 Words 9 Pages
Register to read the introduction… This decision utilized E Ink’s strengths appropriately. E Ink’s advantage in current technology and R&D over other key competitors, such as Iridigm and CDT, will now be focused on specific market with a large potential. E Ink can also leverage its strategic partnerships with established companies such as Toppan, Intel Capital, and Sony, and its faithful investors to hedge against competitors, barriers, future downturns in the market. These strengths coupled with the fact E Ink is still in its developmental stage and entering the growth segment of the S-curve, will make E Ink very profitable and sustainable in the future, providing good reason for a venture capital firm to invest in the …show more content…
E Ink has the potential to pursue the promotional displays used at point of purchase market, the watch market (given their relationship with Seiko and Citizen), and the signage business by supplying these industries with their vastly improved ink platform.

E Ink also has the potential to grow the company vertically by conducting cell assembly, module assembly, and device integration. Exhibit 8 shows the value associated with each aspect of the development of graphical displays. E Ink is currently a materials supplier but could also produce the display or the entire device as well as just license their patents. Selling just licenses could reduce their production cost and increase their margins to 95% but would limit E Ink to a market size of only $45 million (Exhibit
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This would require an initial investment of $30 million to break even but would increase the market size by 5 times (Exhibit 8). This would also require E Ink to compete with other device manufacturers like their current Taiwanese producer. E Ink could also request additional capital from Intel to purchase a device manufacturer, which would open them to a bigger market size while still maintaining relatively higher margins. Becoming more vertical could allow E Ink to increase its selling price to device manufacturers generating higher profits as seen in Figure 2: E Ink Business Models.

In addition to becoming more vertical, E Ink should also focus their resources on partnering with content providers and device manufacturers to develop the exciting content needed to drive demand of eBooks. Utilizing a similar approach to Intel Capital, E Ink should entice publishers and large chain bookstores, such as Amazon, Barnes and Nobles, and Borders to develop eBooks and content to utilize the capabilities of E Ink’s

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