Magnavox Essay

Satisfactory Essays

Employees are not informed on such incentives as bonus structure and incentive plan unless their ideas prove successful. LG usually takes the time to create desirable new features for its brands, although cannot match the innovation with which Magnavox updates its brands’ features. From these competitors, Magnavox can learn to respond to the market in a faster way and establish new manufacturing plants in various emerging economies.
However, Magnavox beats competition by building on strong potential positions, for instance, its innovative and eco-friendly LED technology, with more patents being held by its parent company. Further, the company’s ingeniously-made small home appliances have proven the company a leader where it might fail with its other products when competition intensifies. In the long term, competition would surpass Magnavox in most markets if continues to focus on technology and finance without investing in capable …show more content…

Therefore, for Magnavox to adapt in this market cycle, it has to innovate faster and continuously to replace the obsolete competitive advantages. Magnavox should also take the necessary steps to ensure that consumers understand how to use their innovative products, such as the DVD recorders, which consumers complain to having difficulties using.
In slow-cycle markets, a company’s competitive advantages cannot be imitated due to the costs involved. However, in the case of the consumer electronics market, the rate of imitation is high and thus Magnavox needs to create a proprietary competitive advantage that is difficult for other companies to understand and imitate. Moreover, the organization structure of Magnavox should support its strategic efforts. The only advantage Magnavox maintains that shields its products from imitation is the strong patenting it accords its brands.

Get Access