Daktronics
MBA 609
Leach
Darktronics
Daktronics, a company specializing in manufacturing electronic score board systems, is facing the issue of dealing with a changing environment in their market. Having invested a large amount of capital into their large sales force, the company accrued “relationship capital”. However, increasing involvement of consultants in the market changed the market structure, their good will or relationship capital may not be enough to maintain their marketshare. The presence of the consulting firms coupled with poor market conditions and sometimes hostile relationships with the consultants eroded Daktronics profits. The company now must decide what they are to do as a result of the changing environment in the large venue sports industry and how they will adapt to working with consultants.
Strengths
Daktronic is a market leader in electronic scoreboards, programmable display systems, and large screen video displays. They have a 70-75 percent market share.
Over 40 years in the business
Being an engineering company, they are able to have competitive pricing
They provide one-stop shopping, whereas competitors have to go through multiple companies whose interfaces don’t always work well with one another
Product life cycle is about 10 years
Daktronics is proactive about checking in with their clients, they have positive reviews on their customer service
Miami University considers them the best value on the market when it comes to price, training, support systems and follow up
Won the largest percentages of contracts with a contractor at 38%
Has a legacy, and is already in a lot of great venues gives them an advantage because they already have a foot in the door
Has a pretty big stronghold because they have relationships with so many of the ground level people, broadcast engineers and production teams are familiar with their product so when it’s time to replace the equipment their opinion is based on whatever vendor is currently in their
Leach
Darktronics
Daktronics, a company specializing in manufacturing electronic score board systems, is facing the issue of dealing with a changing environment in their market. Having invested a large amount of capital into their large sales force, the company accrued “relationship capital”. However, increasing involvement of consultants in the market changed the market structure, their good will or relationship capital may not be enough to maintain their marketshare. The presence of the consulting firms coupled with poor market conditions and sometimes hostile relationships with the consultants eroded Daktronics profits. The company now must decide what they are to do as a result of the changing environment in the large venue sports industry and how they will adapt to working with consultants.
Strengths
Daktronic is a market leader in electronic scoreboards, programmable display systems, and large screen video displays. They have a 70-75 percent market share.
Over 40 years in the business
Being an engineering company, they are able to have competitive pricing
They provide one-stop shopping, whereas competitors have to go through multiple companies whose interfaces don’t always work well with one another
Product life cycle is about 10 years
Daktronics is proactive about checking in with their clients, they have positive reviews on their customer service
Miami University considers them the best value on the market when it comes to price, training, support systems and follow up
Won the largest percentages of contracts with a contractor at 38%
Has a legacy, and is already in a lot of great venues gives them an advantage because they already have a foot in the door
Has a pretty big stronghold because they have relationships with so many of the ground level people, broadcast engineers and production teams are familiar with their product so when it’s time to replace the equipment their opinion is based on whatever vendor is currently in their