1)Historical background
The company of Thomson was created in 1883 thanks to an alliance between Elihu Thomson and Edwin Houston. They got together to form a powerful company based in the United States. Over the years, the company has experienced several mergers and acquisitions that have guided areas of activity to broadcasting and electronics. In the 60s, the company specialized in the manufacture of televisions, especially in France where they opened a CRT plant in 1966.
In 1983, Thomson was split into two separate entities, one part manufactured and distributed electronic equipment for the general public and the other part manufactured professional electronics for military use. Thales became its first branch in 2000. The other part of the business changed its name to Thomson Multimedia in 1995 and then, as it was not able to cope with the changing technology in the field of television (gradual transition from CRT to flat screen), Thomson was forced to reorient its activities in 2005, to focus on service and electronic equipment for professionals in the media, entertainment and communication fields. This shift was encouraged by the acquisition of Technicolor companies (duplication of media) and Grass Valley (OEM video).
2)Trade
Thomson formed a business around its business. It began providing solutions for the creation and management of the distribution of images for communication industries such as the media and communication. This business was the common link between the three Strategic Business Units of the company i.e. technology, services and systems.
Tags: Thomson Company – history, Strategic Business Units of Thomson, strategic study of Thomson
[...] Thomson is now the market leader because the company has created a unique and innovative concept that is able to respond to a rapidly changing sector. Another factor that has lead to its success is its adaptability, Thomson was able to make strategic changes in its organization by buying the companies it needed and gradually distanced itself from a decline. All this was done without detriment to the reorientation branding. This shows that Thomson has a level of adaptability that can be applied to the services that it provides to its clients. [...]
[...] However, the company is likely to face some challenges such as meeting businesses and various activities around a sustainable business and maintaining a technological lead over its competitors. It is time that Thomson gains credibility with its investors and customers. [...]
[...] This helps to attract other customers. SWOT Strengths WEAKNESSES • Over 100 years experience in • Difficulty in linking its the field of video and digital three business areas because they imaging come from successive acquisitions. • Lead position in the market Cultural differences between for the creation and dissemination American groups, the French of digital images start-ups and the former Thomson • Control of the chain of • Geographical dispersion can production systems and impede communication and increase installation services management costs • Strong brand image and • Given their place in the reputation client portfolio, large customers • Capacity for adaptability have a strong bargaining power • Offers complete ‘turnkey' • Difficulty of creating a solutions common history for the three • Large portfolio of patents activities. [...]
[...] Analysis of competitive intensity - The intensity of competition Thomson is the market leader because it has created a concept that did not exist before. The fact that this market is relatively new gives Thomson a degree of exclusivity, even if new industry giants such as Sony and Siemens have begun arriving in this niche market. - Bargaining power of customers Customers are large groups in the media sector - entertainment, broadcasting and mass distribution. The weight of each segment is quite important. Contracts are firmly discussed as they involve large volumes and long-term subscriptions. [...]
[...] This may discourage companies such as Thomson. However, this influence is minimal in developed countries like France and the United States. Porter matrix: An external analysis of the company allows us to see that it operates in a market where the only rather mild threat to Thomson is the bargaining power of the customers. Analysis of resources and skills: Resources Geographic: Thomson has seven development centers that are located in 30 different countries. It invests in these centers in order to remain at the forefront of innovation and power solutions worldwide. [...]
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