Year 1999 2000

Rev $5 mn $14 mn

Growth 180%

No of Employee 40

Retail Chain 1120000

Shopping Malls 43600

Shopping area sqft 5330000000

Over all mkt $65 billion

High end retailer
spending on 2500
sqft $750,000
Design Firm 2521
Designer 3091
Estimated Total no of
high end retail
storeretailer 1,200 3000000

Casinos Mkt Potential

No of Casinos 704

Total sft ft 5,500,000

 Competition
Neon Lights old technology; cumbersome to produce color lights. Limited color combination; Requires
GE, Philips has capital to exploit the whole market. JV to develop more sophisticated and low cost prod
Electroluminescence and fibre optic cables
Me too companies ie Borealis, artistic License; low cost.

The lighting industry looks highly

5 forces of profitable in short run but as
competitive competition will rise the
analysis- profitability will go down.

Threat of New Very Low

entrant
 Investement of capital in R&D,
Human resources is high.
Capital Requirement

Cost of production is High.

Economies of Scale
Absolute Cost Low
advantage
Product High
Differentiation

NA
Access to distributor
Patent Barrier High
Retaliation GE and Philips can retaliate

Substitute Low
Competition

Buyers Propensity to
subsititute No other product availaible
Realative prices and
performance of Price may be low but
substitutes performance is very low

Supplier Power High

cost $300 to $1100 very low in
Cost of product propotion to the the total cost of
relative to total cost min $5000

Product Differentiaon None

Competition between High. This will put presure on the
buyers suppliers
Buyers Switching
Cost High

if the manufacturing is sources

Suppliers ability to than in that case suppliers can
forward integrate forward integrate
 Color Kinetics Incorporated (A)
Product feature
Chromacore- Patented
Tech Durability(100000 hrs(11.4ys)
16.7 million color
combination Price
Quick and reliable to
operate Price C series $340-$1100

Less power consumption &

little heat generation Price I color $110-$150
No UV emissions or noise Consumer product -$10-$30

Revenue Per Retail $5000-25000

Avg Revenue Per Retail 15000
Retailment & Visual Merchandising)(Archi, Retail, Merchandising &
Display)

C series No of outlet

High end stores 100

Retail 2% 11200

Mall 10% reach 4360

Casino
C series No of outlet
Minimum reach 10
 Theatrical/entertainment
C series Potential Reach

Total no of clients not

given. We are assuming 5
that atleast 5 clients could
be tapped

Niche market
Swimming pool

Luxury boat

Automotive
Signage

lights. Limited color combination; Requires high power source.

velop more sophisticated and low cost product.

Industry Rivalry
Concentration

Diversity of competitors

Product Differentiation

Excess capacity and Exit Barriers

Cost Conditions

Buyer Power

Cost of product relative to total cost

Product Differentiation

Competition between buyers

Buyers Switching Cost

Buyers Information

Buyers ability to backward integrate

 ted (A)
Product Benefit

New creative designs

Flexibility in use

Usage in wide variety of setups

I color
retail

ising)(Archi, Retail, Merchandising &

Display)

Price/ store project Resource required

Total revenue
750000 75000000 Sales force

5000 56000000 Robust Distribution

Increase in
10000 43600000 Production capacity
765000 174600000
Millions 1746

Casino
Price/ store project Total revenue Segment Analysis
750000 7500000 Needs are high

Millions 75 Easy to penetrate

Wants to create
differentiation
Ability to spend
 Meets long term
objective

l/entertainment
Avg Price/ store project Total revenue Segment Analysis

High on performance
175000 875000
requirement

Lightning designers
are the core buyer

Single large project

More customized
ease of usage
New product
Millions 8.75 development
requirement

Relationship with
Designers could be
leveraged
Growing @21%

Low
 Few Players

None

High

Low

Cost of manufacturing is High

Low bargaining power

cost $300 to $1100 very low in

propotion to the the total cost
of min $5000

The product offer high

differentiation

Very High.
Currently high as there is no
better substitute
Low

Moderate. Light Designers can

be a threat
 Pitch

Durability

Less electricity consumption

Ease of installation and

upkeep

Pitch
Cutting edge technology
Low cost of ownership in
long run

Potential to draw customer

to the shop/casino.
Reliability
Color blending-116
combinations
100000 hrs of life.