E N D
1. Leotek Electronics CorporationThe Leader in Electro-Optics Technology
2. Table of Contents Introduction
The Starting Point
Going Through the Process
The Future Challenge
Conclusions
3. Henry Ford Theory of a 3-Leg Stool Mr. Henry Ford was once asked: You said that Technology, Marketing and Financing are the three most important ingredients for a company to be successful, can you tell me which one of these three is the most important ?
Mr. Henry Ford answered: Technology, Marketing and Financing are just like the three legs of a stool, now can you tell me which one of these three is the most important ?
4. II. The Starting Point II-1. Product Selection
II-2. Attractive Market Potential
II-3. Competitive Situation
5. II-1. Product Selection Product: Light-Emitting Diode (LED) products
* Energy-efficient product: a world-wide trend
* Environmentally friendly, low maintenance cost
and compact size: Technology of the future;
Everything that lights up will be made by LEDs
Market: LED traffic signal light grew at a rate of 80~100%
per year
Technology:
* My expertise and strength
* Team: Available in Taiwan; Taiwan was (and is)
the 2nd largest LED country in the world.
Financing: Available in Taiwan (Many VCs)
9. II-3. Competitive Situation in LED Traffic Signal Lights (1999)
10. II-3. Competitive Situation in LED Traffic Signal Lights (1999)
12. III. Going Through The Process III-1. The Dilemma
III-2. The Answer
III-3. The Strategy
III-4. The Achievement
13. III-1. The Dilemma (Year 1999) Market Share: ~95% of market share occupied by 4 major companies; Leotek had only ~1%
Technology: These 4 companies combined owned 7 major patents; Leotek had only 1.
Financing: 3 of these 4 companies were subsidiaries of large companies with strong financial backing; Leotek had very little financing.
In Addition: These companies entered the market much earlier, with well-known names, strong management and technology teams, well established management systems, etc.
14. My Question The LED traffic signal light market is being occupied by many established companies, do I have any chance here?
16. My Question The LED traffic signal light market is being occupied by many established companies, do I have any chance here?
21. Optical Design
- Better optical designs allow Leotek to use fewer
LEDs to meet the ITE specifications at lower cost
- Filed 2 patents
Driving Circuit Design
- Better temperature compensation circuit design
allows Leotek to have lower cost of the driving
circuit
- Filed 1 patent
Installation Design
- Easier and faster installation designs allow 5-
minute installation compared to 20-minute
installation of competitors products
- Filed 4 patents
29. Capitalization of Leotek
34. Summary Leotek was established in 1993, with no products, no market and very little money (US$36,000 capital).
Spent 5 years searching for products to manufacture, to market and sell.
Decided to focus on LED traffic signal lights in 1999 with a market share of 1% in U.S.A.
In 2001, Leotek became the world 3rd largest LED traffic signal light manufacturer, with a world-wide market share of 20%
35. IV. The Future Challenge IV-1. Whats next ?
IV-2. Goal in LED traffic signal light
IV-3. LED commercial product market
IV-4. When you are in a pack
IV-5. Summary