Date: 18 May 2015Name students: Jasper Krijnen, Jeremy van Lierop, Felix MotenStudent numbers: 10068856. , 13022318, 13103199Class: Com-3b, ES3-2b, ICM 2dAssignment: American BusinessSupervisor: Johan Veldman

InhoudsopgaveIntroduction4About Cree4Analysis of the industry and future changes5The Environment5Opportunities5Constraints6Economic conditions7Competition7Legislation8Markets9Market growth:9LED lighting markets10Industrial / Commercial10Government10Households11Segments11Supplier availability12Analysis of the company13Direction13Scope13Resources13Organisation14Competitors14Competitive advantage15Environment15Stakeholders16Long term16Most important future trends of the LED lighting industry.17Advice future strategy of the company19Operational strategic advice20Research and development20Marketing21Production21Conclusion22Bibliography and references23References:24

IntroductionAbout CreeWorldwide around 20% of all energy generated is used for lighting, making it an unimaginable large market to serve. (The economist, 2006, para. 6) The vast majority of this market is still served with traditional lightbulbs, however the LED industry is best placed to serve this market in the future.Cree Inc. was formed in 1987 by researchers from the North Carolina State University and has its HQ in Durham North-Carolina. The best way to predict the future is to create it, the slogan on the cover of the post annual report 2014 describes the ambition of Cree to be a disruptor in the market of LED lightning. In 2015 Cree had over 3.000 employees and had in 2014 an operating income over 100 million USD. The company is a market-leading innovator of lighting products, LED components, and semiconductor products for power and radio-frequency (RF) applications.Cree is a company that manufactures LED light bulbs. By making a cheaper LED light bulb, the newcomer to the industry hopes to dominate the market for energy-efficient lighting alternatives.In 1989 Cree first brought the blue LED to market and today Cree's XLamp LEDs have continually exceeded industry standards for brightness and efficiency.In March 2013, Cree began offering LED light bulbs (40-W and 60-W equivalent)for the consumer market. Since then Cree has continued to drive the adoption of LED lighting by expanding its product line of LED light bulbs. (Cree.com, 2015, History & milestones)

Analysis of the industry and future changesThe EnvironmentOpportunities

ConstraintsEconomic conditionsAccording to the World Bank, the world economy is still struggling to gain momentum due to the legacies of the global financial crisis. (Worldbank, 2015, para. 1) The Worldbank reports that activity in the United States and the United Kingdom has gathered momentum, however economic recovery in the Euro Area and Japan still remains slow. China is undergoing a carefully managed slowdown and other developing countries show a disappointing level of growth. The following forces are driving the global economic outlook: soft commodity prices; persistently low interest rates but increasingly divergent monetary policies across major economies; and weak world trade. Furthermore the sharp decline in oil prices since mid-2014 will promote growth in oil importing countries and will dampen growth prospects for oil-exporting countries. Overall, in 2015, the world economy is expected to grow with a moderate 3%. (Worldbank, 2015, para. 1-5)Competition

Market leaders

PhilipsOsram

GE lighting SolutionsToshiba

Maxion TechnologiesSolid State Lighting Systems

QD VisionMitsubishi / Verbatim

Lighting Science GroupCree

Market participants

Advantech Lighting Solutions / NaturaLEDLitecontrol

AlbemarleVerbatim

Acuity Brands LightingNewport Corporation / ILX

ATG ElectronicsLightwave

Avances Lumnicos Plus S.A. de C.VILX Lightwave

BridgeLuxNichia

EmcorePluz S.A. de C.V. / NuVue

EpistarProlighting TCP

EverlightSiemens

GESony

IEESony HD OLED panels

IntematixSoraa

iWattTCP

LarsonThorlabs Acquires / Maxion

LED Microsensor NTTechnologies

Lightkiwi, LLC.Toyoda Gosei

Source: Wintergreen Research, 2013, n.p.

Wintergreen Research indicates that the LED market faces both competition from the traditional light bulb market as well as from other LED market participants. (Wintergreen, 2013, n.p.) According to Forbes, the key competitors of Cree are Osram, Philips and General Electric. In terms of revenue, these players are considerably larger than Cree. These companies have the capacity to create vast economies of scale on LED production. Cree bulbs, however, are still the cheapest available in the market. General Electric sells its LED bulbs through Wal-Mart, which has a huge network of 11,000 stores spread across 27 countries. In comparison, Crees retail partner Home Depot has around 2,300 stores. (Forbes, 2015, p.2)Legislation

Source: (MCKinsey, 2012, p.11)The Figure above shows that many countries have and had a timetable of banning traditional incandescent lamps starting with the most inefficient. Incandescent lamps produce more heat than light. Moreover they are the only form of lighting technology that still incorporates the out-dated use of vacuum tubes, technology that has already been replaced by more efficient alternatives in radios and televisions. Most countries have implemented a phased timeline for banning incandescent lighting, starting with banning the inefficient 100W and above light bulbs. Some countries and states take a more aggressive approach; Australia for example has banned incandescent lamps since 2010, and California plans to ban out this old-fashion technology in 2018. (Woodside Capital Partners International, 2012, p.5) It is highly beneficial for the LED industry, that countries and states ban incandescent light bulbs. LED technology is not only supported through the banning of traditional light bulbs, but also by price rebates on LED light bulbs. Local municipalities in the United States help to reduce prices by offering rebates on LED bulbs and LED fixtures. The municipality of Olivia in Minnesota for example offers a rebate of 50% on LED bulbs and LED fixtures. (City of Olivia, 2015, para. 1)MarketsMarket growth:Worldwide around 20% of all energy generated is used for lighting, making it an unimaginable large market to serve. (The economist, 2006, para. 6) The vast majority of this market is still served with traditional light bulbs, however the LED industry is best placed to serve this market in the future. Looking at the forecasts of the LED industry, the market is expected to achieve tremendous growth. In terms of the markets future various sources show both positive and negative outcomes, which is understandable, since it is hard to make accurate predictions. Veikong Industrial for example, expects the LED market to grow with 55% annually from 10.77 billion USD in 2011 to 69,7 billion USD in 2021. (Veikong Industrial, n.d., para. 1) The research company Big Market Research released a 973-page report in 2015 stating that the LED lighting market is anticipated to grow 45% per year from 13.6 USD in 2014 to 63.1 billion by 2020. (Electronicpurchasingstrategies, 2015, para.15) This market forecast is based on the indication that LED producers will create large economies of scale resulting in the creation of a new equilibrium around a low and balanced price level, which will affect consumer behavior in the producers interest.

LED lighting markets

Source: Bhandarkar, Shum and Peters, 2012, para. 9The figure above shows the most important lighting markets and the compound annual growth rate of the LED lighting markets over the period 2011 to 2016. Note that according to the figure the calculated market size of the LED lighting industry is 2.8 billion USD, whereas the Big Market research report calculates a market size of 13.6 USD; assumingly both sources have included different factors when calculating the market size of the LED lighting market.Given below are examples of the most important LED lighting markets:Industrial / CommercialSheetz, the convenience store and gas station chain, ranked 61st on Forbes Magazines List of Americas Largest Private Companies, has installed LED interior and exterior lighting at more than 130 of its locations across six states. The energy savings: 45 percent on interior lighting, and as much as 55 percent on exterior lighting that illuminates Sheetzs gas pumps. As expenses drop, LED lighting is helping boost top-line growth, according to Sheetz, which reports customers find the brighter facilities more visually appealing and perceive them as safer. (Swoboda, 2013, para.7)Government The City of Los Angeles is saving $5.3 million annually thanks to the Green LA initiative that has thus far replaced 114,000 high-pressure sodium street lights with LED lighting, the nations largest such project. Once completed, Los Angeles anticipates LED lighting will save taxpayers $10-million-a-year; nearly two-thirds of what the city had been paying for lighting its streets. (Swoboda, 2013, para. 6)HouseholdsPhilips, startup LIFX and Cree sell LED light bulbs that can be controlled remotely via a smartphone app. The LIFX bulb can change color to music and the Philips Hue can change its color and brightness to mimic a sunrise. The argument, which states that LED bulbs are too expensive, is not valid anymore, since Philips has just recently unveiled a LED light bulb, which is sold at the home depot for 4,97 USD. (Crist, 2015, n.p.) Consumers, who doubt about cool white light of LED light bulbs, should know that modern LED light bulbs come in a variety of color temperatures ranging from cool light, daylight to warm light. The image below shows a conference room lit with CREE XPE light fixtures. (The economist, 2013, para. 10)Segments

Source: Statista, 2015, n.p.The figure above shows the different segments of the LED industry. The figure shows that the lighting segment is by far the largest segment with a market share of 39%, followed by the large display backlighting with a market share of 18% and the automotive industry with a market share of 13%.Supplier availability According to LED Inside by TrendForce Corporation, the lighting market demands in 2014 where polarized; in the first half of 2014, demand was higher than expected which led to supply shortages. In the second half of 2014 the demand was lower than expected which led to rising inventory levels and strong price competition. For 2015, LED manufacturers expansion plans will depend mainly on the trend of government subsidies. (LEDinside, 2014c, para.1)Most LED producers manufacture their products in China due to the many cost advantages. According to LED Inside traditional lighting manufacturers, lighting OEMs, emerging LED lighting manufacturers, and LED-packaging manufacturers all are expanding their LED lighting businesses. (LEDinside, 2014b, para.1)

Analysis of the companyDirectionThe company has a fully integrated vertical business model and is a market leader in both LEDs and LED lighting products. Cree is looking to improve its brand positioning in both the commercial and consumer markets. It is targeting the consumer market by adding new bulb products in the fall lighting season. Moreover, the company aims to expand its work with third-party manufacturers to accelerate growth in LEDs and lighting. These partners will allow Crees factories to develop the latest technologies that are new to the market. The company closed its Lextar investment in Q2 2015 and is working with the team to supply LED chips as well as testing some initial lighting products. The collaboration with Lextar can help Cree expand its presence in the mid-power segment. (Forbes, 2015, p.1)In the Annual Year report of 2014 is written that Cree is focused on four key areas to grow their business. Drive innovation to lower upfront customer costs and further improve payback across all three product segments. Continue to drive LED lighting growth and built the Cree brand in both the consumer and commercial markets. Expand the work with third-party manufacturers to enable growth in LEDs and lighting. Generate incremental operating margin through revenue growth and operating leverage across the business.The mission of Cree is to obsolete energy-inefficient lighting. Cree does not want to scramble to adapt any changes; Cree want to be the change in the industry of LED components for nearly every lighting application. (Annual report 2014, 2015, p.2)ScopeCree is active in the industry of LED lighting. Cree is a market-leading innovator in this industry and also active in creating semiconductor solutions for radio frequency and power applications. Cree wants to offer LED lighting of a high quality, which is energy-efficient, environmentally friendly and long lasting. By continuously improving their products Cree wants to be the market-leader in the LED-lighting industry. (Annual report 2014, 2015, p.2)ResourcesCree offers LED lighting products, but Cree also creates semiconductor solutions for wireless and power applications. Cree is superior by the knowledge and experience about LED-technology, which is available within the company. Because Cree owns a lot of patents Cree is shielded from outright duplication of their specific innovations.The quality of the brand Cree makes Cree as a company successful. By letting consumers understand the case for LED, Cree is determined to be the leader and innovator in the LED lighting market. (Forbes, 2015, p.1-3)OrganisationCree Inc. is formed by the standards of the Sabanes-Exley Act of 2002. This act describes the standards of accountability on boards of companies listed on U.S. stock exchanges. Cree is listed on the NASDAQ exchange platform.Under the Sabanes-Exley Act the directors of Cree Inc. are responsible for the internal control.

Figure 1: Board of Directors. Source: Cree.com, Corportate governance, Board of Directors.Committee CompositionFigure 2: Committee Composition. Source: Cree.com, Corportate governance, committee compostion.The directors of Cree take part in audit- and compensation-committees. The audit committee is formed by four directors who are bond by auditor independence. They are also responsible for the corporate governance, internal control assessment and enhanced financial disclosure.Besides Crees LED technology, the company is also an important manufacturer of semiconductors used in power conversion and wireless communications. (Cree.com, 2015, -)CompetitorsTrefis Team did some research about the industry were Cree is operating in with their LED light bulb technology. In March 2015 Trefis Team came with a report in which they state that the rising competition may be able to decrease Crees market-share. Osram, Philips and GE are some of Crees key competitors in the LED market Cree is operating in. All these players are, in terms of revenue, considerably larger than Cree. The Dutch competitor Philips announced its plan to spin-off its Lumileds LED lighting unit and automotive lighting segment into a separate company by early 2015. Philips plans to spin-off the manufacturing side of the LED business, and will keep the higher margin integrated systems and services as part of its business. The move intensifies competition in the LED market.The American company GE has introduced a number of innovative products into the market at very low prices. In the market the light bulbs of Cree are still one of the cheapest available. The sheer size of GE can help the company achieve economies of scale if it chooses to create LEDs on a vast scale in the future. GE sells its LED bulbs through Wal-Mart, which has a huge network of 11,000 stores spread across 27 countries. In comparison, Crees retail partner Home Depot has around 2,300 stores.The market share of Cree is currently around 10%. During the last quarters the growth of Cree has slowed down and with rising competition from companies like Philips, GE and Samsung there is a possibility that the company loses some market share gained in the last few years. The gross margins of Cree may rise from 35% to 40%, if there would be an improving demand supply situation in the market. (Forbes, 2015, p.1-3)Competitive advantageThe lighting product segment of Cree currently faces competition from the traditional lighting fixture companies. The LED lighting products compete against traditional lighting products. Cree believes LED lighting is the future and Cree will be successful by the superiority of their product amongst the traditional lighting products as the traditional lighting bulb. (Annual report 2014, 2015, p.8) The ability to keep pace with the evolving technology standards of the industry Cree is operating in is necessary to stay successful. The LED market is a market, which is relatively young. The fact major countries are promoting LED lighting the prices for LED lighting are estimated to drop by 30-35% every year. For the larger LED lighting producing companies this will result in a higher unit share because of the expectation that LED lighting will be an affordable option for everyone. This may result in a shift on the lighting market from traditional sources of light to LEDs. Cree has good prospects in the LED industry as it has been granted over 940 US patents and more than 1800 foreign patents. Crees LED products are known for their efficiency and Colour Rendering Index CRI metrics. (Seeking Alpha, 2014, par.3)EnvironmentIn their business Cree cannot forget about factors which may affect their strategic options and define its competitive situation. On macro level it means the political, economic, sociocultural and technological factors. Cree is a multinational company with over 3000 patents worldwide, because of these patents Cree has a competitive advantage above other companies who are operating in the same market. (Annual report 2014, 2015, p.11)Cree depends on a number of suppliers which provide Cree of the necessary raw materials, components and equipment necessary for the manufacturing of the products. The suppliers of Cree are located all around the world can be subject to many constraints which are beyond the control of Cree. (Annual report 2014, 2015, p.7)Because Cree is listed on the NASDAQ exchange platform, Cree has to deal with shareholders. Which means the domestic and the worldwide economy influences the success of Cree. Cree is operating in an industry, which is fast evolving by technological innovations. (Seeking Alpha 2014, par 3)StakeholdersThe most important stakeholders for Cree are the management itself, their shareholders, employees, customers, suppliers, governments and financial institutes. To inform all of the stakeholders Cree offers on its website the annual reports of all the past years. These reports show the way Cree is making progress. (Annual report 2014, 2015, p.11)Long termFor the long term Cree expects that they can realize growth by innovation and rereleasing breakthroughs in lighting solutions. In the introduction of the Annual report of 2014 Charlie Swoboda, the director of Cree, states that he believes that because of the fact Cree is a company with innovation and technology at its core, the company can remain steadfast in the goal to make energy-wasting traditional lighting obsolete. Cree wants to continue and lead the global movement to LED lighting by introducing products that reduce upfront costs and improve the payback over conventional technologies. (Annual report 2014, 2015, p.2)

Most important future trends of the LED lighting industry.

GrowthThe LED industry is expected to grow very rapidly in the coming 10 years. Veikong Industrial for example, expects the LED market to grow with 55% annually from 10.77 billion USD in 2011 to 69,7 billion USD in 2021. (Veikong Industrial, n.d., para. 1) The research company Big Market Research released a report in 2015 of 973 pages, which states that the LED lighting market is anticipated to grow 45% per year from 13.6 USD in 2014 to 63.1 billion by 2020. (Electronicpurchasingstrategies, 2015, para. 2015).Price declineThe prices of LEDs are expected to keep on declining. Manufacturers like Philips, U.S.-based Cree and Germany's Osram have been cutting retail prices of LED light bulbs as they compete for the residential market. (Sheahan, 2014, para. 11) Consumer watershedA commonly held belief among people in the industry is that the explosion in growth will come when LED bulbs reach a certain price point. Some insiders put this at about $14, while other accounts predict $10, or even $5. Still, others regard this watershed level as a closely guarded secret and refuse to talk about it. (Cangeloso, 2012, p.43) Philips has just recently unveiled a LED light bulb which is sold at the home depot for 4,97 USD. (Crist, 2015, n.p.)Remotely controlled light bulbsManufacturers hope they can lure more customers with systems that allow them to customize light intensity, color and composition. Smart lighting allows users to remotely control lamps from a smartphone or tablet computer. They can, for instance, add orange hues to their lights when they want to relax in the evening, have colorful lighting schemes for kids or have their lights blink whenever they receive an e-mail on their smartphone. (Sheahan, 2014, para. 8-9)OLEDLEDs made of organic materials, called OLEDs, promise even more revolutionary design possibilities. Since they were first commercialized a few years ago, they have mostly appeared in small portable devices, such as mobile phones and digital music-players. Based on ultra-thin, lightweight plastic sheets, OLEDs emit a softer; more distributed light than conventional LEDs and might eventually be turned into softly glowing wallpaper or curtains. (The economist, 2006, para. 22)Rare earths LEDs will be manufactured with other raw materialsNon-Chinese sources for rare earths are being developed, and some of these new sources are likely to be operational in time to meet increasing demand for rare earths from the LED sector. (Wilburn, 2012, para. 4)A phased banning-out of traditional light bulbsMost countries have a phased timeline for banning incandescent lighting which started with banning the inefficient 100W and above light bulbs. (Woodside Capital Partners International, 2012, p.5)Light emitting carbon nanotubesLaser lighting, field-emission lighting and lighting based on carbon nanotubes promise even more energy-efficient lighting than LEDs. But while they may eventually provide new and different lighting capabilities, form part of a larger smart lighting solution, or pave the way for smart micro-luminaires, they remain too early in development for speculation to take place on where the technology will lead, or what future products and applications could look like. (HIS Technology, 2014, p.4)Global movement for energy efficient productsDue to concerns about scarce resources and climate change, demand for energy-efficient products has now become a global movement that is bringing about a gradual shift to higher prices in the lighting market. (MCKinsey, 2012, p.14)Gross margin will stay the same more competition, but also more demandLED products gross margin: We forecast the LED products gross margins to remain around 35% over our review period. With big electronic manufacturers like Samsung entering the market, there is an increase in competition. This might result in lower selling prices for products and hence lower gross margins. However, with an improving demand supply situation in the market, the gross margins could increase to 40%, in which scenario there would be a an approximate 15% upside in our current price estimate. (Trefis, 2015, n.p.)Oligopolistic industry will arrive earlyFollowing a surge in LED lighting demand last year, the LED industry welcomed development peak that was never seen before. Every segment of the industry, from upstream to downstream manufacturers began to expand production and strategize channel distribution to gain larger market share. [Mergers and Acquisition] were one of the fastest and most convenient methods to achieve this, which produced the fastest route to receive attention from LED market listed manufacturers. After the second half of last year, almost all LED market listed companies experienced mergers or entered strategic cooperation agreements. (LEDinside, 2014, para. 7)Asia will lead the LED general lighting marketPerspectives on the global lighting market Europe and North America are likely to lead going forward, but Asia is expected to continue building on its number 1 position in terms of revenues due to the vast size of its general lighting market. (MCKinsey, 2011, p.9)Asia is already estimated to be the largest general lighting market with approximately 35 percent of the total market and is strengthening its position due to strong economic growth driven mainly by China. Asias lighting market share is expected to be more than 45 percent by 2020. Europe and North America are likely to follow with a market share of approximately 25 percent and 20 percent, respectively, while the rest of the world will lag far behind these regions. (MCKinsey, 2011, p.33)

Advice future strategy of the company

Prepare for price war.The company has to make real progress in creating an economy of scale in order to be prepared for the price war that has just begun. LEDs are a relatively homogenous product, it is expected that companies will mainly differentiate themselves by price on the fast growing consumer market. Since Crees key competitors Osram, Philips and General Electric are considerably larger in terms of revenue and market share and already have the capacity to create vast economies of scale, the future advise to Cree is to make investments in the fixed capacity in order to bring down the price per unit.Improve smart bulbs.Continue with smart bulbs in order to attract consumers into buying LED lighting. Cree has to keep improving its connected bulbs and should invest in adding new features in order to keep its market share high in this fast growing consumer segment. Crees new 60-watt replacement LED Bulb is compatible with Wink and ZigBee certified hubs and is sold for only $14,97 at The Home Depot, making it the cheapest smart bulb on the market. Looking at its price, Crees new replacement lamp is poised to drive adoption by consumers, however, it does not offer the expanded features of the Philips Hue.Develop cheap LED bulb.Cree has to develop a cheap LED bulb that can compete price-wise with the Philips light bulb, which only costs $4,97.Distribution.As already mentioned, the way LED producers are expected to differentiate themselves on the consumer market is by price and by distribution channel. The advice for Cree is to increase the number of distributors; at the moment General Electric sells its bulbs to Wall Mart which has 11.000 stores. Cree sells its bulbs to The Home Depot which has only 2300 stores.

Be the first LED producer that sells a design OLED lamp for consumers.Although OLEDs are not yet as reliable as general LED bulbs, it would be wise for Cree to develop attractive LED lighting for households. This advice is given, not only since it will make Cree a market leader in the new and attractive OLED residential market, but also since attractive OLED panels can increase the brand awareness. Carbon nanotubesDont invest too heavily on carbon nanotubes, the money can be better spent on increasing the companys market share. It is uncertain where this technology will lead to, and although is a promising technology, it will be a strategic choice for the company to acquire this new technology by merging or taking over a company with carbon nanotube patents. Military purposesDue to the shockproof characteristics of light emitting diodes, it is advised for the company to develop lighting products that are targeted on military uses. At the moment, the company Energy Focus is the sole supplier of LED products commercial shipping industry and U.S. military fleets; due to Crees competitive advantage, the US military, with an annual spending of 786 billion dollar will be an interesting market to enter. Supplier of the US military > image

Operational strategic adviceResearch and developmentThe company should continue to use its strengths efficiently and focus on its already present assets. Research and development is on of the key factors in the companys success with the LED light bulb. Thus expanding in either this sector, entering a new one or even creating the companys own niche, will prove to be valuable if the consumer oriented strategy is pursued. In Addition the production of LED light bulbs calls for the use of rare elements, Cree could take the next step and focus on developing new technologies to become even more efficient and environmentally friendly.MarketingAgain consumer insight is key in todays business world. With Crees LED light bulb the company created a product that is not a niche product, yet one that consumer want to purchase. Furthermore competitors LED light bulbs did not look appealing and were confusing to consumers. Thus Cree decided to take a consumer oriented approach in their product design. (Babej, 2014) This approach was also used in the marketing of the LED light bulb. The companys future marketing depends on the direction and market their products are present in. Nevertheless if the future products target audience does not greatly differ or vary from the LED light bulbs the company should aim to take the same approach, as the consumer base will already be present along with a certain amount of brand loyalty.ProductionThe company aimed at providing high quality products at a relatively low price. A potential problem with this arises as the production of LED light bulbs calls for the use of rare earths. As the name already suggests these elements are scare thus potentially increasing the average price of the production in the long run. Thus if possible the company could start initiatives such as recycling broken/worn LED light bulbs to counteract this issue from occurring.

ConclusionCree has successfully managed to become on of the market leaders in the LED industry. The company has Osram, Philips and GE as its main competitors in the LED market. In comparison to Cree, these competitors are considerably larger in terms of revenue. Nevertheless Cree managed to quickly become one of the most if not the most successful companies in the industry. Crees success has been based around designing a product that is consumer oriented. The company was able to surpass its competitors by offering a high quality product at a considerable low price. Innovation was key to Crees success as it incorporated the development of new consumer targeted LED light bulbs designed to, simply put, replace the outdated traditional light bulbs. Nevertheless it is imperative to note the difference in innovation and improvement. Cree did use an existing product and improved its performance to through already existing systems. Thus not fundamentally changing the way the desired result is accomplished. Cree focused largely around the research and development of a new product by coming up with an entirely new a product, which meant building a brand. Altering consumer perceptions of (their) LED light bulbs to being the new norm. The company needs to continue to invest heavily in their research and development sector as the LED market could potentially loose its oligopoly state. Through the 21st Centuries fast advances in technology along with the ever-increasing flow of information, markets in the technology sector could possibly face higher levels of competition in the future. Nevertheless Cree has one of the most valuable assets in the market. Having proven itself within the market the company earned the trust and loyalty of its consumers. Thus using this key factor to their advantage and expanding its product range could perhaps be worthwhile. Adding to being consumer oriented the company has to focus on long run developments in the market itself. Similar to the change in computer screens, the same change has taken place in the lighting industry. Cree can potentially use its understanding of consumer expectation of advancing new areas of the technological sector to its advance and continue its focus on updates.

Bibliography and references

Seeking Alpha. (2014, December 14). Cree Inc. May Soon Become Interesting. Retrieved from Seekingalpha.com: http://seekingalpha.com/article/2754195-cree-inc-may-soon-become-interestingSwoboda, C. (2014). Annual report 2014. Durham: Cree.US Government. (2002, Jule 30). Sabanes-Exley Act of 2002. Sabanes-Exley Act of 2002. Washington D.C.

References:

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