How a convergence product affects related markets: The case of the mobile phone

Analyzing the diffusion of a convergence product is a new and challenging research field. It is very difficult to find research dealing with this issue due to the inherent complexity and lack of data. In analyzing the diffusion of a convergence product, we should simultaneously take into account its relationship with related single-function products because of their similarities in terms of technology and functionality. In this study, we empirically analyze the diffusion of the convergence mobile phones in South Korea and find that the convergence products can affect the diffusion of MP3 players and digital cameras positively or negatively. This research may be significant for business strategies in technology management and product development.