| dc.description.abstract | Due to the high market price, it is hard to promote LED tubes nowadays. The market price of LED tubes is 17.5 times than that of fluorescent tubes. Although the advantages of LED tubes are energy saving and eco-friendly, it doesn’t help to earn a high market price. Normally, a total new product （disruptive innovation） takes time to phase in the market because no one know the product in the beginning stage. Or even end users know the products but are not familiar with theirs advantages. Or end uses know the advantages of the products very well, but can’t afford to pay such a price. LED tubes are facing the high market price issue and can’t cross the chasm between Market introduction stage and Growth stage.
In accounting, fluorescent tubes belong to expense account. However, the life span of LED tubes is almost 50,000 hours. After studying definition of Accounting, law or government regulations, LED tubes can belong to asset account. Due to this change of cost behavior, for enterprises, the loan can be collateralized by LED tubes and then the fund dispatching can be more flexible. The purchase decision of LED tubes should be complex. Buyers should consider the total cost, included products performance, durable time and saving energy cost, not the market price only.
For the business model of LED tubes, the lump sum, installment or lease all can execute well. However in buyer views, if for the long period project, the installment model is the best choice. If for the short period project, the lease should be the best choice. In seller views, whether the project is for long or short period, the lease model is the best choice.
Usually innovations are hard to cross the chasm because of the high market price. If we modify our business model to lease, all innovations can have opportunities to enlarge the market share.
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