VIZIO, Inc. is a flat-panel television business that was founded in 2002 by its CEO William
Wang. VIZIO positioned itself on selling high-quality televisions for affordable prices. It did so
by decreasing profit margins, partnering up and selling its products at discount and warehouse
retailers, and with efficient manufacturing, distribution and production processes. VIZIO
experienced rapid growth from 2002-2008, where it ranked third in the flat-panel TV market
and held 9% of the market share. However, VIZIO also faced some critical issues that needed to
be addressed. In the following sections, those issues will be identified and alternative solutions
will be presented. Also, specific recommendations as to how VIZIO should proceed and
implement the plan will be addressed.
First, VIZIO must determine how it will maintain its’ rapid growth and market share in
the saturated flat-panel TV market. VIZIO has many alternatives it can choose, including
expanding into the international market, reducing the quality (and cost) of the materials it uses,
or to change its existing product line by eliminating failing products categories or introducing
new product categories. Ultimately, after reviewing the pros and cons of each alternative,
VIZIO should proceed by reducing the cost of the material it uses in its products, specifically the
chipset and panel sector.
Next, VIZIO must devise a strategy in order to survive the economic downturn. The
biggest uncertainty facing VIZIO in 2008 was the poor state of the economy. The large drop in
consumer spending hit the retail industry particularly hard. Since VIZIO already operates on low
margins, it must find another method to remain sustainable. There are several options it can
choose. VIZIO could consider launching a comprehensive marketing and advertising campaign
aimed at emphasizing quality and value to consumers in order to increase demand for its
products and recapture market...