Since this blog is under Circuits Assembly…. ( a wide array of markets using electronics assembly technology)

I take exception to: “After all, what doesn’t have Intel inside?”

While this may apply to PC manufacturers.. It is a poor example of the shared technology in most other consumer products…. even less with other industries.

However, if the statement is referencing consumer, high density, electronics products being pervasive….
Sure, technology no longer much of a differentiation between companies.

In fact …If the company is producing consumer electronics,
most of the real design and production are happening with only a few , large ODMs and CMs.. (a few exceptions are still out there).

So what is the focus for the “name brand” consumer electronics company?
Marketing is the primary differentiation….

And…. how well they can coordinate the remaining functions (concept development, finance, support, etc…)

Their “technology” is rarely unique to them.
Their manufacturing options… same as everyone else.
Same for most every of aspect of their companies.

20 years ago… consumer electronics companies were vertical … many ways to differentiate themselves.
They had to be good at many areas of expertise.

Now they have only two areas to “focus” … 1)Marketing and 2) who can exploit the next , cheapest labor pool available.

So the “focus” is taking successful marketing teams into new markets.
This is what we are witnessing when………
Noika becomes a Netbook provider.
or
Dell gets into phones…
or
Apple gets into selling songs…

We have gotten too lazy .. and given the technology to others so we can focus on marketing.
When will those with the technology realize they have the “keys to the kingdom”?
All they have to do… is develop a marketing plan.
When this happens.. all the players will change.

Witness IBM getting out of the laptop market (Lenevo)
I equate this to IBM putting there focus on other than “consumer” markets.
It doesn’t matter if they make a great product..
After awhile.. it only matters if they can market better …
This creates cycle of diminishing margins…
Unacceptable for their stock holders…

Thus, the crazy situation these companies have created for themselves…. trying to define their “focus”.

This is one of the reasons why I don’t want to be involved in any consumer electronics… As someone developing technology, I don’t have much real value.. except as a “hired gun”… ( a commodity) in their business plan.

Other markets.. still have some long term reasoning in their plans.

I prefer to see technology driving marketing.. instead of marketing driving technology.

Your August 24th blog is right on the money. I am a proponent of Jim Collin’s observation that the best companies stick to their core competencies. In today’s difficult economic market it is increasingly tempting to diversify our product lines. Over the past several years, we have successfully resisted the temptation to offer our customers a product based solely on the idea that we can build it.

Our company only sells products that are in full alignment with our vision and core competencies. This has allowed us to grow profitably for seventeen consecutive years. We have also seen other companies expand their product portfolio to include, among many other things, products that compete with ours. In nearly every case, these companies could not maintain a sustaining presence in our specific industry. They lacked persistence and ingenuity that a sole focus can provide.

Mike Konrad
Aqueous Technologies
http://www.aqueoustech.com