Core Issue: This report provides an analysis of Cree Inc. Cree is North Carolina based company that engages in the manufacturing and marketing of LED lightbulbs all around the world. The company was a major player in the developing LED market, earning most of its revenue by selling chips and components to businesses. Chuck Swoboda, a former employee in Hewlett-Packard’s (HP) LED group, became CEO of Cree in June 2001 after 8 years with the company. By 2006, net income started to decline and then in 2007 Cree’s annual revenue decreased for the first time in company history. Analysis: A growth in potential for the LED market arose in 2007 when the US passed a law banning the most inefficient incandescents through an extended phase-out. The …show more content…
Keep Current Customers: The case states that Cree has very little notoriety as the founders were never focused on branding, they had never even underwent a corporate marketing campaign before 2006. This being said, the brand is not strong enough to cut out their current customers, business, and sell directly to the end users. This is especially true given their competition, massive corporations like WalMart and GE.
Keep Backlighting: Cree’s backlighting segment currently makes up much of Cree’s revenue and the backlighting market is expected to grow to $7 billion by 2013. The market is already proven as Cree has been a player in it since the late 1990’s and also is expected to grow in the future. Given this, it is wise for Cree to continue backlighting operations to guarantee income from operations while investing assets in developing new technology that will help them expand into the general lighting market.
Detailed Analysis to Follow: The methods of analysis used in this report rely on the SCEQ framework, the PEST framework, a value chain analysis, as well as a look at Porter’s five forces. They give an overview of macro and industry trends affecting the recommendations. Any calculations made are done so using the exhibits in the provided case.
Goal Analysis Swoboda and his team’s goals after the disappointing financial performances in 2006 and 2007 are to get revenue to increase again, as it
Company has evolved to handle joint ventures, but not all of them turn into successes.
We evaluated our company’s position in the industry, and found ourselves in an excellent starting position to further develop our products and match them to the industry’s needs. Our market share is adequate and we can advance further with our strategy improve and reposition our products in the coming years. We have underutilized capacity, which we intend to improve, while increasing automation to reduce costs. We have plans to improve our promotion to improve product awareness and with the appropriate product lines we will increase price to improve margins and better align our high-end product image. Our current financial position is optimistic, showing our leverage (Assets/Equity) at 2.0, when our goal is to maintain 1.5-2.0 overall. By utilizing the analysis tools we are learning what elements are driving demand, how to effectively tailor our products through R&D, how best to adjust our marketing and pricing, while lowering input costs, in order to improve margins and to ensure our stakeholders are all satisfied.
The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.
This review provides an in-depth strategic SWOT analysis of the company’s businesses and operations in the areas of internal strengths and weaknesses and external opportunities and threats. (Sector Publishing Intelligence)
The Alternative energy industry in the United States has been at a steady rate of growth for the past decade, however there is still controversy over the use of renewable energies, their impact on the economy, and their impact on the environment. As controversial as the topic is, the argument boils down to a moral need to support environmental regulations, and an economical need to sustain domestic growth in the Energy industry of the United States. Mainly, the question is can alternative energy effective replace fossil fuels? There are of course arguments for both sides of this question.
Columbia Plastics division of Fraser Company, the major manufacturer of skylights in the Pacific Northwest, is facing a severe competition from Vancouver Light which has just announced a further price cut of 10%. Alice Howell, president of the Columbia Plastics is unsure of which options to implement – 1) cut the prices at a level that just cover the costs, or 2) continue the current pricing policy and lose market leadership. Fraser is facing the erosion of its market share.
In contrast, some believe that renewable energy is a key factor involved in helping the economy to grow. Many jobs are created in the manufacturing and running of renewable energy plants. The renewable energy and energy efficiency technologies created 8.5 million new jobs and $970 billion in revenue in the year 2006 (Langwith, “Renewable Energy is Economically”). The American Solar Energy Society says by 2030 it could generate up to $4.5 trillion in revenue for the U.S and create 40 million new jobs. This would represent one in every four jobs (Langwith, “Renewable Energy is Economically”). This shows how vital it is to get renewable energy companies in the U.S. It is important to build a stable economy again and do it all while helping the environment.
A group of professional members of Colorado State University excited about developing and marketing the product
Can you ever imagine a world without light bulb? Before light bulb was created, the night can only be lit by the moon and stars. People working and traveling after sunset could only use candles or oil lamps, which caused many inconveniences. Without any bright light, moving inside your own house even seemed dangerous. However, things changed after the ambitious inventors brought their bright idea, which was to light the world, to life. The invention and the commercialization of light bulb not only changed the way people live, but also became a technological breakthrough for future energy use in our daily lives.
After struggling as a manufacturer of solar energy products, the company moved to making printed circuit boards (PCBs) for
Conversely, looking at the income statement for PMWL, operating income shows healthy gains of $45,862, which means the operating expenses are significantly lower in comparison to AWBL’s. However, PMWL’s cost of goods sold appear abnormally high, which makes an investor question whether this company is at it’s maturity phase in the product life cycle, and how much additional capital is necessary to bring this figure down to a number that leverages economies of scale and allows for profit maximization.
PAC Resources, Inc. is a small manufacturing company that specializes in high-quality specialized components for computers. Recently the company has faced a number of issues involving depleting sales, employee unrest, poor management and employee relations, and a lack of HR support. Currently, there are several pending decisions to be solved involving the organization and the HR department, human resource development, safety and security, staffing, compensation and benefits, and employee relations. Ultimately, to resolve these problems the solutions will take account of a SWOT analysis of the company along with multiple sources, potential alternatives, and dissenting opinions as a guide to the best
With reference to property led regeneration, name one case study, describe its aims and comment on its effectiveness? (8 marks)
Cherry Lady Company that is under Alicia Gans’ management produces premium chocolate. The organization is torn between having Epicurean Selections as the main customer and pursuing other new opportunities that are discovered in the sector. However, accepting Epicurean Selections as the key client would alter the business drastically. Therefore, there are key options that the firm has to pursue in order to make an effective decision
The SunPower Company is an up and coming manufacturer and seller of photovoltaic (PV) panels. As a young company with a strong desire for innovation they operate in an atmosphere where competition is very high and SunPower and the competition continue to fight for market shares. For SunPower management team to promote its growth will need to make sound decisions to ensure it stays competitive with the market. As seen in 2008, with other solar companies already dominating the market, increasing sales was an imperative goal to achieve its main objective to maximize profit.