Industry Background

John

Sounds like a good idea.

Here's some background research I

gathered about our proposal and

some information on the lighting

industry in general.

John

At this point, which force do you think

should be our biggest concern?

Buyers

Suppliers

New Entrants

Rivalry

Industry Background Facts

Industry is projected to grow at $1\mathrm{.}5\%/$year for the next few years

Lighting fixtures industry is roughly $$4$ billion worldwide

Manufacturing

Mostly smaller manufacturers

Few, if any, manufacturers have a recognized brand

Popular designs are rapidly copied

Patents offer little protection

Technology for internet$-$connected smart fixtures is growing slowly

Creating specialized production lines is necessary

Distribution Channels

Many smaller manufacturers sell directly through large retailers such as Home Depot, Target, and

Walmart

Some retailers offer their own private label brands

Large manufacturers sell directly through their websites $($as well as through retail$)$

Individuals often compare prices across all channels before making a purchase

Suppliers

Primary materials are commodities like metal, wood, plastic, and glass

Most manufacturers use a wide variety of suppliers for these commodities

Each commodity has a large number of suppliers from which to choose

Startup Process