Audio & Video Equipment Manufacturing

Audio & Video Equipment Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture audio and video equipment such as televisions, stereos, speakers, video players, and camcorders. Major companies include Bose (US); LG Electronics and Samsung (both based in South Korea); Panasonic, Pioneer, and Sony (all based in Japan); and Philips (Netherlands).

COMPETITIVE LANDSCAPE

Demand is driven by?consumer income?and the?rate of product innovation. The profitability of individual companies depends on manufacturing efficiency and effective marketing and distribution. Large companies have advantages in economies of scale in manufacturing, marketing, and distribution. Small companies can compete effectively by offering specialty products or components in system solutions, such as speakers in a home theater system. The US industry is concentrated: the 50 largest companies account for less than 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are audio and video equipment (about 40%), followed by commercial sound equipment (about 20%), speakers (15%), and public address systems (about 15%). Other products include automotive audio equipment and single loudspeakers mounted in an enclosure. Small companies tend to focus on being either first to market with premium-priced products offering higher functionality and performance, or being a "fast follower" with lower-priced products. Large manufacturers may follow both strategies by having multiple product lines.