Porter's Five Forces: New Lights for Classic Styles $(3)$ Industry Background Industry Background Here's some background research I gathered about our proposal and some information on the lighting industry in Industry Background Facts Industry is projected to grow at $\backslash (1\mathrm{.}5\backslash \%/\backslash )$ year for the next few years general. Lighting fixtures industry is roughly $\backslash (\backslash$$ $4\backslash )$ billion worldwide Manufacturing $-$ Mostly smaller manufacturers $-$ Few, if any, manufacturers have a recognized brand $-$ Popular designs are rapidly copied $-$ Patents offer little protection $-$ Technology for internet$-$connected smart fixtures is growing slowly $-$ Creating specialized production lines is necessary Distribution Channels $-$ Many smaller manufacturers sell directly through large retailers such as Home Depot, Target, and Walmart $-$ Some retailers offer their own private label brands $-$ Large manufacturers sell directly through their websites $($as well as through retail$)-$ Individuals often compare prices across all channels before making a purchase Suppliers $-$ Primary materials are commodities like metal, wood, plastic, and glass $-$ Most manufacturers use a wide variety of suppliers for these commodities $-$ Each commodity has a large number of suppliers from which to choose Startup Process $-$ An efficient factory can cost between $\backslash (\backslash$$ $15-50\backslash )$ million dollars $-$ Outsourced manufacturing can reduce initial costs for a niche player to less than $\backslash (\backslash$$ $100,000\backslash )-$ The regulations are simple and straightforward for lighting fixtures $-$ Marketing expenditures can be controlled through targeted ads