DAKTRONICS (A): THE DIGITAL SIGNAGE INDUSTRY IN 2010 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

The United States signage industry has been quite old and has been performing for ages. The industry is quite old and the players have been performing for quite a long time. The emerging digital signage industry has been representing the nexus (the intersection) between the two major industries that are the Billboard and the Sign Manufacturing Industry and the Billboard and the Outdoor Display Advertising industry.

The first industry that is the Billboard and the Sign Manufacturing Industry has been rather focused on the manufacturing hardware which includes the digital and the paper display with the outdoor billboard that are located on the highways, the digital display outdoor billboards and the in store digital displays while the second industry has been keen to focus on the development of the content which includes the images, the actual words and the graphics that look to portray and communicate the message of the advertiser.

Moreover, different companies have competed in the digital signage industry where they have integrated the hardware and the content that shall be delivered to the digital messaging to the consumer markets which look to rather change the information within the industry.

Along with this, the advertising industry is also called as the digital out of home (DOOH) market, while the companies that offer these services are called the messaging systems or the digital signage. The industry has not been a uniform one in its language and the industry has relied upon the interchangeability, billboard, sign manufacturing, out of home advertising, DOOH, outdoor, sign manufacturing which has been represented the same elements within the industry.

The industry has been quite competitive where each player has been competing with the rival firm and company based on different attributes. However, major factors for all the companies have been same where they offer high quality after sales service, retention of the customers and prices that are as per the industry standards.

Case Scenario

The case “Daktronics (A): The Digital Signage Industry in 2010” indicates that the signage industry in 2010 has become quite complex, multi segment, multi product, multi channel and highly fragmented with the dominant players emerging rather rapidly in the market with the evolution of technology.

Moreover, the industry entry barrier is low. The firms that have actually placed themselves as dominant competitors have had higher levels of vertical integration, better financial stability and a larger product portfolio that has been able to serve multiple segments.

The increase in capabilities, the design and prices, diverse products has actually made the industry players and companies to fulfil customer needs and wants.

Analysis

Environmental Analysis

The section shall include the PEST analysis of the signage industry. The section shall also include the political, economical, social and the technological environment of the industry. Moreover, the analysis shall help in identifying the factors that shall be required to analyze the market position.

DAKTRONICS (A) THE DIGITAL SIGNAGE INDUSTRY IN 2010 Case Solution

Political

The political situation of the industry has been quite in favor of the signage companies. The reason is simple, as the case states, most of the firms in the market have been competing rather skillfully, the entry barriers are low which provides opportunities for new players to enter the market.

This suggests that the government has been quite supportive in actually making things in favor of the industry players. Therefore, it can be considered that after the recession of the year 2008, the political and the government support has helped organizations in this sector emerge.

Economic

Although the country and its economy has been emerging after the global recession. Industry players have been quite well equipped in the current era to provide customers with utmost results and have also installed new dimensions to their product profile, which indicates that the economic stability has actually started to come within the signage market. However, important to note here is that the interest rates have increased recently, the prices for the customers have been rather fluctuating. The industry or the customer pending patterns are still limited and they are hesitant to spend a lot on signage marketing.

The industry has shown major signs of improvement since the since the year 2010, and it is estimated that the industry shall go down in the coming period by a major amount,which is estimated to be $13.3 billion in the year 2015. This is an average increase with the percentage rise of 2.9 percent.................

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