Zenith Hdtv Case Analysis

When VIZIO first entered the highly competitive LCD TV market in 2003 the price point for 40 inch plasma TVs averaged around $2000 - $2500, while the average price for a CRT TV was only $500. The price difference limited the consumers to the ones that had a college education, were prosperous, and obviously had a significant disposable income. As such, the products only targeted the market segment that included customers that were 35+

Sharp has a strong international presence and is a well known brand. It offers a variety of diverse products to its customers, including TV’s, laptops, and home appliances. A diversification of product portfolio is important as it protects company against risk of exposure in any particular line of business (Johnson, 2006). Therefore Sharp is relatively strong in this aspect. In addition, Sharp places an intense focus on research and development of new technologies and products, ensuring that their output is the best in the industry.

Televisions through time went from bulky, low resolution models to elegant High Definition (HD), Ultra HD displays. As they got slimmer, the resolution went higher as well, allowing for sharper images when gaming or watching movies and shows. It has been made possible by the addition of more and more pixels to increase the visual quality of the images displayed through it. Audio has improved as well, by being able to connect wireless speakers to the TV for surround sound, through Bluetooth.

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

Bargaining power of buyers is medium-high because of the low switching costs and wider spectrum of similar products selling at competitive prices due to the influence of developing countries

Due to the fact of price sensitivity is high, consumers are willing to consume identical product with lower price; they stand on a strong bargaining position. On the contrary, suppliers have relative strong bargaining power because the high concentration of the industry.

While much of the power of television in the 1960’s can be attributed to the mainstream availability and shear increase in ownership, the delivery format also contributed to its influence. One of the biggest

Consumers are also investing in home theaters. TV’s are bigger than ever and have digital and 3D capability. As the costs of all the components go down consumers are

Although televisions serve the same entertainment purpose as they did during my childhood, the picture, sound, and shape have evolved, to better fit the needs of consumers presently.

Barco’s business model is based on differentiation strategy, which in turns caters for a particular niche segment of the projection system market. BPS is thus able to charge a premium price for its products. In order to be competitive BPS cannot play the price war game with Sony, which has much wider presence in the electronics market. In addition, price war will erode the complete market. BPS can only sustain the differentiation game by bringing on new and better products.

Price is a factor that holds a large portion of Vizio’s executive’s visions for the company. They are strong believers in offering the greatest entertainment for a very affordable price. This is what creates the advantage they posses over competitors. There is a strategically effective approach the company takes in order to offer these products in the price range in which they do. The televisions themselves are designed in America, but manufactured in Taiwan by Amtrans Technology Ltd. They are then imported to America by Amtrans. Amtrans is widely known as being the best quality producer of HDTV’s and is the second largest producer of flat panel televisions. As for the screens on the televisions, Vizio’s LCD screens are made by LG and their plasma’s are made by Panasonic. This ensures that all of their televisions offer the same, if not better quality, than Vizio’s competitors. Using such a large manufacturer such as Amtrans also allows Vizio to import and sell their products for cheaper than other companies. Therefore, we believe using this process will allow Vizio to import their televisions to Australia for around the same cost as those companies that they will be competing

The next set of forces is the threat of new entrants and possible substitutes that the TV service providers industry faces. Possible new entrants into the industry are Verizon, AT&T, Sprint, Apple, and Amazon. All of these entries could pose a strong threat to the industry. They have similar technologies and have the

Sony has many products and started to branch out. Sony has mostly started to manufacture appliances and electronics. Even thou many new different products may arise, Sony can manage and maintain their quality.

The bargaining power of buyers is affected by the concentration and number of consumers, when buyer power is strong, they gain the power to choose between producers and ultimately equip themselves with bargaining power which then the producers will have to conform to in order to produce profit, under these conditions the buyer has the most influence in determining the price of products. Also when buyers have strong bargaining power in the exchange relationship, competition can be affected in several ways. Powerful buyers can bargain for lower prices, better

Stability, reliability and trust, which were critical strengths of the TVS corporate brand were now taken for granted, important to have, but no longer enough to which to build a differentiated proposition.