After a period of explosive growth around 2000, technology players are now experiencing a new type of development. Today, competition is more intense, fuelled by new technologies (e.g. WLAN versus UMTS), new products, the emergence of new players (China) and different business models (e.g. fabless companies).
How can players in the electronics space maintain their leadership?
- A smart product portfolio de-proliferation strategy and low complexity cost structure can keep a player’s cost/quality position above that of the competition
- Adjusting response times to fast-changing client and market expectations
– Short manufacturing cycles and high-performance supply chains
– Optimised development cycles
– Effective management of client relationships to better meet client needs and achieve solid price positioning
- The choice of business model (core business versus make-or-buy, global footprint) must effectively counter the “commoditisation” of the company’s products and secure its position in the value chain. Players must be able to maintain their margins by capitalising on a robust management of patents and recurring revenues (e.g. content, subscriptions, accessories, consumables)