Vertical integration: How to survive when you are just manufacturing projection screens?

Jasper cabinets, a US based furniture maker has taken over TheaterXtreme, a home theater franchise operation, which went under a few months ago.

This gives the manufacturer a more direct control of which products would be available to the franchisees. This is a possibility for projection screen manufacturers as well. Because many screens are seen as commodities. Especially of those companies that have been selling to OEM customers or who don’t have a strong brand presence.

The good thing about projection screens is that they offer good margins, compared to the flat panel versions. This makes the product very interesting for specialised integrators. So by taking control of a distributor for example, a manufacturer can ensure his products reach the market place.

This takes a strategic vision though. One which realises that projection screens are and will always be a niche product. A vision that sees the market for projection screens get smaller, because flat panels are getting bigger. A vision that sees the value of a projection screen for a reseller.

Now, with the players we know in Europe, who has that vision. I know of one company. You tell me of the others icon wink Vertical integration: How to survive when you are just manufacturing projection screens?

Otto

See the official story here

Leave a Comment

Previous post:

Next post: