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External Market Forces and Da-Lite Screen Company

By Edited Nov 13, 2013 0 0

This is a response to a question asked in my college business class, I was asked to detail some external forces that my given organization is/will be dealing with over the next five years. There are several external forces we learned about, but we were only asked to detail four. Here is what I came up with:

Da-Lite Screen Company is a privately owned projection screen and accessory manufacturer. While there are only a handful of manufacturing facilities that house less than 600 employees internationally, there are numerous international and domestic dealers that help the organization earn between 166$ million to 300$ million in revenue annually. While this organization is small compared to larger multi-national organizations, it still has to effectively deal with all environmental forces that exsist in business environment and commerce.

One of the more prominant forces includes the competive field that Da-Lite is harbored in. While this organization was started in 1909 with the first ever silver screen created by Da-Lite's original founder, Adele Beery, the more current years have brough on competition between domestic projection screen manufacturers as well as foreign producers. Over the next five years Da-Lite will have to reduce human error in individual shipments as well as market their product adequately, and remain competitivly priced to remain prominent in the projection screen game. In addition to these factors, the organization must also produce innovative ideas, and customization to its customers-which they have catered to with the launch of their Design Center.

In regards to both environmental and economic forces, Da-Lite has vowed to become more green as they pursue ISO 9000 certification-they currently have ISO 14000-2004 certification. By gaining the ISO 9000 certification, they hope to eliminate even more of the waste that leaves the company, and reduce the negative impact the organization has on the surrounding community and environment. Outside of environmental help, this new certification will also save the company money in terms of less material purchased-and less material (a.k.a money) thrown out-ultimately creating more monetary cushion for the organization in an uncertain economic future. Obviously, the next five years of this type of behavior would reap about 6.5$ to 12$ million per year in retained revenue equaling 32.5$ to 60$ million saved over the course of 5 years. Not to mention the amount of waste reduction caused by ISO 9000 certification- which is set to be retained by at-the-latest June 2011.

Lastly, and probably the most important force to be reconed with, the technological force. Ever-expanding HDTV and plasma TV markets encroach on the home theater projection screen market, and some large venue markets that use to be solely projection screen obligated. As technology evolves, larger TV's are being created successfully and competing well against small to medium sized projection screens. Some branches of Da-Lite have become almost obsolete due to these changes, and thus the organization has had to put more emphasis on other products and product functions within the company. Over the course of the next five years, its assumed that the growing TV market will continue to consume the need for smaller projection screens, so Da-Lite has engineered new products, options, and the organization as a whole is marketing more towards screens that do not have competition in the television industry- yet.


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