Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 60

Many would argue that the TV manufacturing business has become largely a commodity business, and competition is based on price, with many good brands offered at low prices at retailers such as Wal-Mart. The manufacturers of TVs are said to have a barrier to entry from other potential competitors because the existing manufacturers (Phillips, Sony, Samsung, etc.) have spent huge sums to develop their brands and manufacturing facilities. In recent years there has been a large growth in the number of contract manufacturers (such as Flextronics) that manufacture TVs for the large firms. How does this affect the competition within the industry Are there now new opportunities for smaller manufacturers of TVs