What They’re Thinking: Kathy Gornik
To Thiel, (adapting to the creative destruction of the market place) means we have to redesign products. We don’t have to give up any of our values. We still do high performance, high quality products and embrace those values, but we have to re-package what it is we do.
We are forced to compete on the basis of price. The advent of surround sound, where people now needed five speakers instead of two and their budget remained more or less constant, means that we had to figure out a way to give a surround sound experience without breaking the bank or without our prices being so high without being competitive.
We do most of our manufacturing in-house, but more and more of our components are manufactured in China. When we manufacture in China, we completely determine the designs, and we do 100 percent of the quality control and final testing, traveling to inspect the manufacturing process and final assembly. Most manufacturing happens here in the U.S. where we do our own testing.