Yet Edison's jaundiced pessimism about radio proved
to correct: the industry was marked overproduction and
competition between many small players. This was the death knell
for TAE Inc. Edison's insistence that the radio business was too
chaotic and dangerous enter was probably ascribed the
obstinacy the "old man" who could not see, hear, its
advantages. This had shown some results the early twenties, but
unfortunately the company entered the radio market just the
competition became intense and vicious price war began. early 1925 the
signs overcrowded industry were present many the
13
financial weaklings went bankrupt The Splitdorf Company had
warned its investors that the radio business was "hazardous
one," but nothing seemed dampen the enthusiasm the
management TAE Inc. The radio business was hit hard because the
market was flooded with very cheap radios produced the many
small companies struggling survive.^ The marketing problems were many; the
technology was new and one could predict how the customer
would respond.'s ambitious marketing strategy; only the low-cost
producers had chance make profit. In
1929 the first indications the Great Depression were
present: sluggish demand, soft prices, and growing
unemployment.XIV- 8
work college-trained engineers and experienced marketing
men. The
. After losing about $2
million dollars, the company withdrew from the industry. The Edison company used the same strategy
adopted for the phonograph aiming the high end the
market
