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Audio and Video Equipment Manufacturing
First Research, Sep 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US audio and video equipment manufacturing industry includes about 550 companies with combined annual revenue of about $10 billion. Major companies include Harman International, Bose, and US divisions of foreign companies like Sony and Philips. The industry is highly concentrated: the 50 largest companies have almost 90 percent of overall revenue.
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 theatre system. Average annual revenue per worker is about $500,000 per year.
Audio and video equipment competes with PCs and game consoles in the consumer home entertainment market. PCs and game consoles are covered in profiles of the Computer Manufacture and Electronic Gaming Products industries.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include TVs, auto and home stereos, speakers, DVD players, VCRs, and camcorders.
Audio and video equipment manufacturers depend on product engineers to design new products that are high performance, low cost, and easy to use. 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 ...
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