Companies in this industry manufacture televisions, stereos, speakers, video players, and camcorders. Major companies include Bose and Harman International (both based in the US), along with LG Electronics and Samsung (South Korea); Panasonic, Pioneer, and Sony (Japan); and Royal Philips (the Netherlands).
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 highly concentrated: the 50 largest companies account for about 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include TVs, auto and home stereos, speakers, DVD players, Blu-ray players, and camcorders. 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.