Research Article
A Study on the Development of Home Network Industry Index
Published: January 2006 · Vol. 35, No. 3 · pp. 851-869
Full Text
Abstract
Due to the characteristic of the home network industry as a heterogeneous convergence industry combining various industries, the process of individually analyzing related industries, identifying inter-industry relationships, and making comprehensive judgments is not straightforward. In this study, we classified the home network industry into infrastructure, solution, device, and service sectors, measured industry indices for each sub-sector, and proposed a methodology for indexing the overall market status by integrating these indices. We then measured the actual state of Korea's home network industry using real data. Sub-sector indices were measured by classifying them into business performance indices, market indicator indices, and future outlook indices. Once the sub-sector indices were measured, the final home network industry index was calculated by integrating them using revenue-based weights reflecting each sector's share of home network industry sales. The infrastructure and solution sectors showed high business performance and market indicator indices, while the service and device sectors showed high future outlook indices. This reflects the industry's view that while the home network industry is currently being led by the infrastructure and solution sectors, it will transition toward being centered on the service and device sectors in the future. The final home network industry index scored 23.5 on a 100-point scale. Rather than the absolute meaning of this 23.5 figure, it is expected to be usefully employed through periodic surveys and year-over-year comparative analyses to understand the characteristics of how Korea's home network industry is developing. Furthermore, it is expected to serve as a measurement tool that can be utilized for understanding the current state of the home network industry and for determining how the government's policy decisions and firms' management and investment strategies should be selected for the development of the home network industry.
