Swot Analysis Of Cree Inc.

1863 WordsOct 19, 20178 Pages
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

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