Flat TVs, Fax Machines, Music Players, Dominated by Two Companies Each

The flat LCD TV, fax machine, and music player markets are being dominated by a few players.

In fact, in each area just two companies hold more than 60% market share.

Weaker rivals find it difficult or impossible to keep up with falling prices, capital investment and eventually…sooner rather than later…drop out.

The flat panel TV market is dominated by Matsushita Electric Industrial (64%) and Hitachi (30%).

The LCD TV market is dominated by Sharp Corp. and Sony Corp. with a combined share of 68%.

Apple Japan and Sony hold 66% of the portable music player market.

Sharp and Matsushita have 60% of the fax machine market.

Huge companies with large market share can produce high quality goods at a lower price because of mass production.

However…when the competition is snuffed out, it does not bode well in the long run.

There's always a trade off.

What do you think?