Cree Inc Introducing the LED Light Bulb Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Cree Inc Introducing the LED Light Bulb Case Study Analysis

Industry Rivalry

Cree has three of its largest competitors in the market. General Electric is a leader in this sector. It sells CFL, LED and incandescent lamps. Next up, is Osram, which also meets the needs of the lamp market. There are different types of lamps in the market. The third competitor is Philips, which is the distributor as well as the manufacturer of lamps and supplies various lamps in the market. These three are the company’s main competitors, and Cree is trying to capture the market by emitting cheaper, better and more durable bulbs.

Quantitative Analysis:

Financial Analysis:

In Appendix 3 of the document, the company’s income statement shows revenues between the years 2010 and 2013. It shows how the company made a profit after the introduction of LED lamps in the year 2013. It has been identified that the income as well as profits are growing rapidly. To understand and estimate the future sales;the average income and costs have been calculated. If all aspects remain the same;the sales might be highlighted for years to come. Appendix 4 of the document presents sales in the budget and shows how the company can make profit. Sales in the budget indicates to profit generation in the upcoming years, although they wouldn’t be as good as the previous years’, still the company wouldn’t incur any loss. If the business invests in advertising;it can increase sales and make higher profits.

Findings

It has been found that the company has an excessive cash, alongside high borrowing capacity

The company does not have any brand equity while making the durable products with the legitimate supplier powers

The company has around 2500 skilled labors and open-minded management.

Recommendations

Cree has the potential and sustainability, thanks to its intelligence and R&D resources that have enabled it to be a market leader. Their products are effective and inexpensive, but because people do not recognize the brand; they do not advertise it. Second, customers are always looking for great deals; therefore, they might offer volume discounts and introduce market entry offers to increase the sales. The company needs to offer good after-sales service, which increases the customers’ loyalty to the brand.

Conclusion

Since the company was found;it has been a great success. Cree has been serving the industry since the 1980s. The company has been serving the businesses for a long time, so there is no brand name in the consumer goods market. Now that trends are changing and so are government regulations; the company has an opportunity to serve the consumer market. It has to compete with large multinationals that have been operating in the market for a long time, in order to determine its market position. Cree enjoys a competitive advantage, which means it has the ability to control the cost of lamps and meet the market demand at very low prices. Other companies do not have this option, because Cree differs from other companies because it is vertically integrated...................................

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