Terry, I agree. Zenith, as an independent partner, offers LGE an outstanding vehicle to penetrate very lucrative CE markets within the US and abroad.
The Korean tidal wave requires every global company to re-examine its global strategy within a business environment of "too many goods chasing too few buyers" (Warren Buffett's forecast, six months ago).
If you read my 'prescription', you'll note that I strongly recommend that Zenith rid itself from manufacturing and focus on R&D, branding, marketing and distribution.
The Korean tidal wave has seriously attacked the viability of Glenview/Melrose and every other US CE manufacturer, presently. There is no way in hell that the production lines in Melrose can compete with the Koreans and others who need to dump their goods on the market just to survive. Who will buy Zenith's PC monitors and NTSC-version TVs when they can pick up the same from Asia at "fire-sale" prices? US anti-dumping laws, now, won't hold, since, the Koreans and others are selling the same items for equal or less at home (due to local currency devaluations).
More innovative and high-end CE products, stronger and broader branding campaigns, fiecer marketing and distribution penetration, additional 'best of breed' partnering (all on a worldwide basis) are Zenith's keys to sustainable profitability.
Hope Glenview and Seoul read it the same... |
