Internal Factors External Factors
Strengths Opportunities
Technology:
● Functional benefits of SSL
● Significant economic and environmental advantages of using SSL
● Strong intellectual property portfolio
Competitive Advantages:
● Pioneering in full-spectrum SSL technology with patents.
● Outsourcing all of its manufacturing to the companies in the United States and China,
Operational Capabilities:
● Overcoming the financial challenge with a restructuring cost of nearly $3.9 million. Favorable Market Conditions:
● The total LED segment had increased at a rate of 11 percent over the previous seven years to almost $2.3 billion in 1999.
● High-brightness LEDs had a market size of $680 million in 1999 with a projection of continued growth to nearly
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○ The market foresees a huge demand in LED and hence it is time for Lightwave to partner with a big name in lighting industry and built that brand recognition for themselves.
● Weakness and Threat (WT):
○ Partnering with big names in lighting industries will safeguard Lightwave from its competitors and hence can also be protected from the unpredicted up and downs of economy.
VII. RECOMMENDED COURSE OF ACTION
Lightwave Technology should seriously consider strategic merger and acquisition. It should join hands with an industry giant in architecture or entertainment industry where the there is a lot of untapped potential. By becoming a part of larger brand, it will now be a more credible company. Not only Lightwave Technology can now combat competition but also will be able increase its marketing and manufacturing budget contributing to achieve large market share. This will also be beneficial for the partnering brand as it will get first access to disruptive technology.
VII.
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UPDATE TO PRESENT
Lightwave Technology made profit from a part of illumination market worth $79 million. LED products constituted $2.3 billion of this. From 1997, capturing the strategic opportunities has led Lightwave Technology Inc. achieve success. The market conditions have been extremely favorable and has shown a tremendous growth of 500 percent in less than half a decade. The change in the usage of LEDs has also impacted a lot to the growth of the company. The technology is now used across many sectors and areas of work.
The fact that LEDs are environment friendly and cost efficient made it a huge hit. This energy saving tech was awarded with the Architectural Lighting Prize of the year at International Lightening Exposition. This fetched the company instant credibility and company started blooming.
The company was able to capture the market because of two important strengths: Flexibility and cost effectiveness. Both compelled its customers to choose LED over other source of lights and created a huge turmoil in the illumination market. This technology edge proves to be the competitive advantage over other major players and lighting companies. This made LEDS famous from signage to entertainment to work to roads and so