Vizio is Winning Price War
Some of the world’s biggest consumer electronics brand names are struggling in the U.S. flat panel market against a much newer, much smaller competitor: Vizio. According to a Wall Street Journal analysis, Vizio’s privately-held, single-focused model represents the rise of what may be a triumphant new business model.
Vizio, which is less than three years old and is singularly focused on designing and marketing low-priced LCD TVs, briefly took the number one spot in market share for LCD TVs last summer, although it has since been overtaken by Sony. However, several of those companies, including Philips and Sony, are struggling to make a profit in the flat-panel sector while Vizio is thriving.
Using low-cost suppliers, Vizio sells much of its product through discount retailers such as Wal*Mart and Costco.