PRESENTED BY: ELIZABETH DILLARD MAN4801 Diode Inc.
The problem with most light bulbs besides LED is that there are results in high costing electric bills, maintenance issues, and environmental issues.
Mission statement: Save the community power.
Vision : Skies the limit; lighting is everywhere.
Values : Allow companies to be environmentally safe while also saving money.
Strategies: Start up, Promote, Grow, Name Recognition.
Lighting Industry/Market Potential
Lighting industry is dominated by several international name brands: GE, Sylvania(Osram), Philips who are focused on Fluorescent & Incandescent lighting.
Market potential: Per Israel Morejon, President of LedNovation/Tampa: the U.S. Market buys over 5.7 million lights per day, 365 days per year = 2,080,500,000 lights/yr
OCT. 2010; GE closed last U.S. light MFG plant & moved to China due to cost. Sylvania & Philips have all plants in China to lower costs to help prevent LED lighting from establishing foothold.
LED light growth in Japan now exceeds 50% of domestic market with expected growth to exceed 17.5%/yr. due to lower operating costs and longer useful life.
A change to LED lighting helped Mandalay Bay Resort & Casino in Las Vegas lower their electricity costs from $36 million/yr. to $4 million/yr. A reduction of 80%, not including the savings from maintenance reductions.
Market focus is the commercial market potential of 2 billion plus lights in the U.S. marketplace (the following lighting have LED equivalents):
T8’s (Fluorescent tube lights) are the most commercially required light for office lighting
Par 30’s & Par 38’s are flood lights used frequently in architectural highlight lighting in office locations.
MR 16’s are used in commercially to display products.
We are not attempting to pursue the commodity market such for individuals
University of Miami believes their maintenance cost for changing a light bulb is $56 (Lower maintenance cost plus lower electricity costs = savings)
Toshiba: Japan, Par 30 & 38, Plastic (6 LEDs), Lower Cost, Magazine, life time.
VA Opto: USA, T8, Par 30 & 38, MR16, Metal (7 LEDs), Higher Cost, Trade Shows, Constancy
GSSI: USA, Street Lights, T8, Par 20, 30 & 38, Plastic (138 LEDs) higher Cost, Internet, Price
Competitior Name Strength Weakness Opportunity Threat Toshiba Par 30 & 38 Limited Product Line Lower Cost Cost & Product Name Recogition VA Opto T8; Par 30 & 38; MR 16 Product Consistancy Lower Cost Volume pricing; production Capability GSSI Street Lights; T8; Par 20,30 & 38; Mr16 Name Recognition Higher Cost Broader product offering
Business Model: Focus on large potential customers for LED Lighting: Resorts, Cruise Lines, Office Complexes.
Sales (Commission 8%)
Profitability Ratios based on Customer Type
Financial Ratios cont.
Valuation Ratios (assumes $5000/share & 5 shares per owner/4 owners)