Monday, February 25, 2013

Vizio

The US LCD TV labor in 2007
v Forces:
Bargaining Power of Suppliers:
Bargaining Power of Customers
Traditionally, openhanded consumer electronics companies homogeneous Samsung and Sony enjoyed high securities industry share within the LCD industry by building, developing, and marketing their products in-house. This system created high barriers to entry and defended against the flagellum of new entrants in the industry. Consumers had limited bargaining power and were forced to accept the retail price that was dictated to them by the large Korean and Japanese companies. As LCD technology became more and more commoditized, the threat of new entrants into the marketplace increased. This threat materialized in the pull in of Vizio, which captured a unique advantage by tying suppliers to developers/marketers in coif to produce abject cost LCD TVs. Vizio reduced costs by focusing on the manufacturing of existing technology rather than on Research and Development. As more low cost alternatives entered the market, the flat panel LCD TV market in the United States became more fragmented and competitive.

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This is evidenced by the fact that as of 2007, the three largest LCD TV manufacturers shipped 14.2%, 12.5%, and 12.4% of demand, respectively.

increasingly competitive as prices dropped and allowed for more customer bargaining power.

Vizio partnered with AmTran, a Taiwanese contract manufacturer that also supplied Sharp smoke and Sony, and created but, unlike Sharp or Sony, 23% stake in Vizio, AmTran was highly incentivized to provide Vizio with their highest quality products in a apropos manner.
Threat of New Entrants
Threat of Substitute Products
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