Zenith’ Hdtv

Zenith’ Hdtv

Goal

Increase profit of per unit sales by developing new technology to get net income in the beginning of 1990Ў¦s.

Impediment

Competitive TV market erode the unit profit

Solution:

Develop new technology to increase profit

Goal defense:

Despite sales volume increase, Zenith gets net loss of more and more in the end of 1980Ў¦s. With strong brand and distribution, Zenith sale for continuing operation increase from $1,401 million in 1988 to $1,549 million in 1989, but the net loss of also increases from $11 mi1lion in 1988 to $17 million in 1989. That is to say, the profit of each unit decreases more than the amount of unit increase. How to increase the unit profit is most important to the board of Zenith, experienced on high technology make more profit to Zenith even in the late of 1980Ў¦s. Develop new technology would be a good choice

Impediment Defense

Competitive market eroded TV unit profit, 1971 Zenith retail union