Magnetic & Optical Media Manufacturing

Magnetic & Optical Media Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture optical discs, hard drive disks, and magnetic tape storage. Major companies include CMC Magnetics and RITEK (Taiwan); and FUJIFILM, Maxell, Showa Denko, and Sony (all based in Japan)).

COMPETITIVE LANDSCAPE

Demand for magnetic and optical media is driven by ever-expanding data storage needs of businesses and consumers. However, demand for particular storage formats can decline rapidly as new technologies are developed. The profitability of individual companies depends on manufacturing efficiency, rapid technological advancements, effective marketing, and efficient distribution. Large companies enjoy economies of scale in manufacturing and distribution. Small companies can compete effectively by developing new products. The US industry is highly?concentrated; the top 4 companies account for over 85% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include magnetic recording media and parts (95%). Other products include optical disks, blank CDs, DVDs, and other recordable media as well.