Chapter 12. Consumer Relationships: A Tale of Channels and Brands

Sean Lafferty, Brigitte Majewski

In this new millennium, demand for consumer electronics is hot—plasma TVs, camera phones, and MP3 players are the “I can’t live without it” status symbols of our age. Who would benefit most from this trend than the global consumer electronics player? Indeed, after a rough start to the decade, CE manufacturers are seeing a revenue rebound. What they are not seeing is improved profits. A strategic analysis shows CE players in an uncomfortable position, sandwiched between hyper-competitive retailers serving savvy consumer, and low-cost new entrants leveraging cheap labor and less overhead. Only CE manufacturers who re-evaluate their relationship with ...

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