n n n n n
 

CONSUMER ELECTRONICS

sector Overview:

In the past decade or so, the number of players in consumer electronics has grown exponentially. New markets have created opportunities for new brands and low-cost manufacturing has broken free from the low quality stigma. As such, traditional leaders such as Philips, Sony, and Matsushita have been joined by a wide range of newcomers such as LG and Samsung. A period of consolidation in the 1980s was driven by an economy-of-scale rationale. This no longer applies. There are numerous high quality component suppliers for DVD players, TVs, radios and digital cameras which now feed a global market; the barriers to entry as a branded source of products have never been lower.
Alongside the major international brands such as Samsung and Sony, hundreds of other makes are found in every high street, supermarket or on-line retailer. Throw ever faster technology development into the mix, product introduction and standardisation have both accelerated. Many of the major players in the sector now recognise design as a major differentiator alongside superior technology development and have been increasingly embracing leading-edge design into their core. Sony and Philips have always had strong design teams but now they are equally matched by LG and Samsung internal resources as well as by the multiple design agencies used in this arena.

Despite being increasingly competitive and price conscious, with consumers eager to get their hands on the latest iconic gizmo, this is a market in which many firms are keen to participate and so is one in which more and more Asian firms will enter. This is particularly true for those in China which have been long-term production centres and, like their Taiwanese counterparts, are now moving up the value chain.

ONES WE ARE WATCHING

 

LG
LG is on a similar path as Samsung going for creating a stronger brand and delivering top quality products in the home products arena. Its joint venture with Philips has helped establish the LCD TV portfolio and, as demonstrated by recent launches such as the Prada and chocolate phones, this traditional me-too innovator is moving fast up the innovation value chain and seeking to exploit its broad technology and product portfolios.

Sony
Although making significant losses in recent years, Sony’s consumer electronics group is fighting back and with the recent win in the battle of the high definition DVD formats going its way is set to capitalise on broader opportunities to use this as a platform for broader innovation. In addition as its Vaio range of computers and the ubiquitous Walkman gain strength, some would see a positive future for this previous star of the sector.

  

 

 

 

Adidas
Apple
Aviva
BASF
BMW
Boeing
Cannon
Google
Handelsbanken
H&M
Infosys
LEGO
Lilly
Medtronic
Microsoft
Nokia
NTT DoCoMo
PepsiCo
Reckitt Benckiser
Samsung
> Company Profile
> Innovation Scorecard
> Sector Overview
> Innovation Drivers
Shell
Starwood
Tesco
UPS
Virgin Atlantic