Strategically Blogging

When Will OLEDs be the Next Big Thing in Lighting?

Stephanie Pruitt 10/08/2014

OLEDs have been gaining in popularity lately, mainly in displays, but also more recently in general lighting. They offer many benefits over traditional and LED lighting, including being a surface emitting light source (as opposed to point emitting), being extremely thin, and having the capability to be flexible and even transparent. OLEDs open the doors to really innovative and creative light forms that were previously not possible with traditional lighting. However, they still have a ways to go in efficacy, lumen output, and price compared to their less expensive inorganic counterparts that are still struggling to really penetrate into the market.

Shonika Vijay

High-End Lighting Markets for Solid State Lighting

Shonika Vijay 09/30/2014

Lighting has always been seen as a commodity market. In fact, most people buy their light bulbs from the same place they buy their milk. It is a price war out there with slim profit margins on lighting products; meanwhile, the market keeps demanding higher quality. The general indoor lighting market mostly consists of the following form factors: downlights, troffers, suspended pendants, track lights, and high bay lights (a detailed market report of general lighting luminaires with these form factors along with all technologies will be released this November). Downlights and troffers make up the majority of the installed luminaire base for all regions. In order to compete for penetration in these installed luminaire bases, LED lighting has had to slash its prices while making sure it can sustain the light output levels of halogens, incandescent, and fluorescent technologies.

Fiber Laser Market Continues to Evolve

Allen Nogee 09/05/2014

I’ve always been a person who has been very interested in the latest technology, and sometimes it’s hard for me to believe how much technology has changed over the years.

Everything from flat screen TVs, DVRs, audio equipment, cables and wiring, computers, tablets, smartphones, and so many others have evolved over the years, and in most ways, the new technology is quicker, smaller, cheaper, and more energy efficient. Today we take all these things for granted, but it wasn’t that long ago that a flat screen TV or a smartphone was a novelty. Today we just can’t even imagine living without these things.

Martin Shih

A Win-Win Situation: Cree Announces Investment in Lextar through Private Placement

Martin Shih 09/05/2014

Cree recently announced plans to invest US $83M in Lextar Electronics, one of Taiwan’s major LED manufacturers, in order to acquire 13% of Lextar shares and to enter a supply/royalty agreement. Cree will become Lextar’s second largest shareholder (AUO, Lextar’s parent company, is the biggest shareholder) and obtain one member of BOD. This deal is expected to be done at the end of 2014 and the lock-up period is 3 years, which means Lextar will reserve its capacity for Cree for 3 years.

Lasers in Medical Imaging: The Forecast Looks Very Bright

Allen Nogee 07/11/2014

Almost all medical imaging to date has used one of three technologies: X-rays, magnetism (MRI), or ultrasound. X-rays alone have been used for almost 120 years now, and although today’s imaging technology has improved vastly over the many years, the fact remains that x-rays, ultrasound, and magnetism are all technologies that, due to many factors, produce coarse images, at least by today’s standards. But what if a very coherent light source was used instead, maybe a laser?

Actually, Optical Coherence Tomography (OCT), which produces images based on the reflections of coherent light, is not a new technology. OCT has been used since the early 1990s, especially in the area of ophthalmology, where the images produced by OCT are 100 times finer than standard images produced by ultrasound. In just the last five years, OCT has become one of the most important retinal imaging techniques used today.

Munich Part 2--Consolidation?

By Tom Hausken
A question that comes up at every big industry event is, when is the laser industry going to consolidate? It came up in my conversations at Laser Munich last week, and it came up in the CEO Roundtable (for a full video, click here ). This time, I posed the question to the CEOs: is there really an argument for consolidation, or is it just code for "let's get these lifestyle companies out of our way so my big company can keep growing."

Their answers were interesting, and were supported in many other discussions I had last week.

Stuart Schoenmann of CVI Melles Griot made the argument that consolidation across products produces economies of scale that can enable things you cannot do with smaller companies. Larger scale frees up management to make more optimal and strategic choices, whether it is where it is putting its R & D money or whether to outsource or not.

Ulrich Simon of Carl Zeiss Microimaging argued for consolidation in the vertical direction to own core technologies, : providing advantages that cannot be gained in a more stratified supply chain. Trumpf has often made that argument.IPG has gone that route, too.

David Marks of Qioptiq acknowleged that the industry needs to continue to support small companies , in part for the innovation that they bring. As much as start-ups must seem like spoilers,VCs have funded a lot of innovation that never paid them a penny in return, and the people and IP often wind up in the big companies. There is a lot less of that nowadays, but it still happens.

John Ambroseo of Coherent closed with a rousing argument that the real competition is not other laser companies, but all the other technologies out there --mechanical drills and shears, other medical treatments, other types of sensors. Without consolidation, the laser industry spends inefficiently on redundant R&D, distracting the industry from bigger opportunities.

I've always maintained that consolidation means different things to different people. To me, consolidation is only meaningful in specific market segments. It's when a few competitors have most of the market share. (Consolidation is the process. Concentration is the result.) This can happen when companies consolidate internally, by exiting product lines, but it's often hard to know this from outside. The laser industry is highly fragmented into hundreds of niches. It turns a big laser company into what I call a "confederation of business units. They do gain advantages in scale, to be sure, but it is also more complex to manage. It's hard to manage such big, sprawling companies. It's also hard to grow when you are already a big dog.

Not mentioned was that some segments seem to favor consolidation more than others. This leads into another topic that came up at Laser Munich: is it too late for a company trying to make it big in fiber lasers? I'll address that in a later post.

For other thoughts on consolidation, see:
Fragmentation depends on your point of view
Consolidation, Part 2--Is Oclaro consolidation or redistribution?
Consolidation in the laser market, Part 1--How much is there?

Tom Hausken
Strategies Unlimited
thausken@strategies-u.com
http://www.strategies-u.com/

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