E Ink’s decision to target the retail sign market as a point for entry was a poor choice because of three reasons: first, the retail sign market doesn’t fully utilize the product’s value proposition; second, the technology doesn’t add enough benefits that will encourage mass industry adoption; third, the resulting company’s cultural tension that arises from developing an exciting product for a “mundane” application such as signage.
The value proposition that E Ink provides with their technology involves providing high contrast dynamic displays that use low power that can be shown on flexible surfaces. By targeting the retail signage market, E Ink ignores some of the benefits in their technology. By nature, retail signs are large, infrequently changing, and must be aesthetically pleasing. So while some firms will see a reduction in production and labor costs, they’ll see little value from having displays than consume low energy and can be displayed on a variety of surfaces.......
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