Submitted by: Submitted by EEllerton
Views: 386
Words: 685
Pages: 3
Category: Business and Industry
Date Submitted: 07/31/2011 11:09 PM
LED / tech company : what to look out for
* R&D
* Does the company do the manufacturing or just the design and marketing? (advantage is lower overheads)
* Cyclical industry?
* Porters 5 forces
* Threat of new entrants
* Availability of substitutes
* Bargaining power of suppliers
* Competition
* Bargaining power of buyers
* Like most tech areas at the moment, LED in a growth phase. Market demand has been lead by mobile phones? (mobile phone sector panning off now) Other opportunities include cars, computers, TVs, road lights, buildings….
* Taiwan and Japan largest manufacturers
* Patents usually controlled by leading Japanese and American firms
* Patents for white LEDs can be roughly divided into three categories:
* LED chips
* Fluorescent powder
* Packaging methods
* Focus on energy efficiency: US government for example keen to promote LEDs in general use light bulbs. By 2015 should only cost about $10
* There are a plethora of conglomerates as well as pure plays in the market
* Derives most of revenue through LED related sales inc government agencies supporting the development of LED lighting
* Manufacturing in North Caroline and China
* Investment in R&D?
* Sales to their 2 key customers represented 29% of gross revenue
* Inventory back log almost doubled in 2010 compared to 2009
* Inventory management key challenge
* 3 main factors contributing to success
* Intellectual property
* Price
* Performance
* Risk factors
* Increasing reliance on subcontractors
* Matching customer demand and capacity
* High fixed costs
* Product diversification
* Dependent on customers’ ability to integrate the LED products into their own
* Reliant on a few key suppliers
* Change in accounting regulations
* Loss of human capital
* Outlook and aims
* LED...