VIZIO's Case Study

Paper Type:  Case study
Pages:  4
Wordcount:  878 Words
Date:  2022-04-27


VIZIO Inc is one of the largest manufacturer and designers of LED/LCD flat television across the United States, Canada, and Mexico. The company boost of immense growth since its inception in 2002. The company has grown to tremendous height becoming one of the leading electronic brands alongside Samsung and Sony. The memo will focus to highlight VIZIO Inc international and domestic industrial conditions while analyzing the company's corporate strategy and competitive advantage.

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VIZIO Inc Domestic and International Industry

The Vizio inc main production focus is the production of the television set, the competition from other global giants like Samsung have placed immense pressure on the quality of products being supplied to the market. Hence the latter has placed much of its operations on the third- party contractors who would be able to produce segmented parts required for manufacturing of a final product. Vizio Inc is primarily considered to be the only company in the electronics industry across the United States to relegate much of its operations to a third party contractor. Additionally, the company sold parts of its share to the chines electronic giant mega-firm LeEco for close to two billion dollars the move helped to stabilize the company in the domestic sector from its main rivals. Internationally VIZIO Inc is slowly gaining footing on the international market especially the Asian-European markets thanks to the shared sold to the Chinese electronic corporation.

VIZIO's Corporate Strategy

One of the best management strategies that can be applied to Vizio to analyze their performance is the porters five forces; it aims at identifying opportunities and threats existing within the company. It constitutes of Porter's Five Forces of competition position analysis was created by Michael Porter in 1979 as a practical framework for evaluating and assessing the strengths and weaknesses of businesses enterprise or an enter industry. The Porter's forces are industrial competition; the power of suppliers; entry and exit into the industry; the power of the customer, and threats of substitute products.

Competition in the industry: the force focus on the concentration of competitors in a given industry, the more the competitors in given industry, the lower the likelihood of a given company to dominate the industry. Most customers and supplier would consider making their purchase in a more competitive market since they are sure of receiving suitable deals on prices (Dobbs, 38, 2014). Vizio Inc is facing intense competition from global brands such as Sony, Lg, and Hisense; most of the Vizio products are only dominant in the American market. Thus it makes it difficult for the latter to gain ground outside the American continent due to stiff competition. An example in the financial year 2006-2007 saw a significant reduction of electronic appliances prices by twenty-four percent this was attributed to the commercial rivalry among Vizio Inc and its competitors such Panasonic and Syntax-Brillian Corp.

Potential of New Entrants into an Industry: a given industrial sector can be influenced by the ability of a given firm to either enter or exit the market. If the existing regulation encourages quick entry or exit within a given industry, this may result in negative performance towards the respective sector or vice versa. Most of the limiting factors that regulate the entry or exit of a firm in a within an industry are typically established and control by the government or players with the monopoly over the market. Previously entry into the manufacturing industry was deemed capital intensive. However, Vizio strategic model proved that applying a contract- manufacturing and asset-light model concepts dramatically lowered the cost of initial investment, which made easy for the company to commenced operations in the already dominated market in 2002.

Sources of Competitive Advantage

Ideally, most economic and business experts assume that Vizio does not have a competitive advantage within the electronic market industry. Experts suggest that it would be possible for the company to gain the competitive advantage if it develops a significant difference between costs and its willingness to pay (WTP). Currently, the model is applicable, however, there a relatively huge number of electronic manufacturers who are delegating the role of manufacturing- or sub-contracting (Sekaran and Bougie, nd, 2016). To ensure they focus on market activation through various marketing strategies such business models are applicable especially with VIZIO Inc; where most of their production is sub-contracted to individual contractors. VIZIO Inc is yet to engage on quality enhancement, product differentiation fully, and customization it may fall victim to intense competition from other industry players who are constantly evolving to keep up with the latest trends in the market.

For VIZIO Inc to gain a competitive advantage, it should invest in making television sets that will reflect modernity of the twenty-first century while costing less than what the competitors are producing. The application of competitive advantage model does not commence with strategic diagnosis, which influences the implementation stages of the planned strategic decision. But instead, the application of the model should be applied after detection of the need in-depth changes that will enable VIZIO Inc to gain the competitive advantage in the electronic market


E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach. John Wiley & Sons.

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VIZIO's Case Study. (2022, Apr 27). Retrieved from

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