LED lighting fixtures market of US Research Paper

LED lighting fixtures market of US - Research Paper Example Third basic benefit LED based light offers are increased life spam performance as compare to conventional lighting technologies. Well designed LED lights gives 50,000 to 100,000 hours of performance or more. Along with these basic benefits associated with LED. These features provides overall cost effectiveness and environmentally beneficial source of lighting (The Climate Group, 2012). 3. Customer Demographic and Market Demographic Lighting industry in US is second in row after China. US demand for s same is projected to increase by 7.5 percent annually amounting to $25.3 billion in 2016 (IES, 2012). This product is not entitled to cater people of certain age, state, sex etc. It is residential as well as commercial product designed for all cost sensitive segment, low income segment. These fixtures provide efficient source of lighting which is need of every house and office. 4. Reasons for Selecting China for Buying China has been selected as a destination for production as it provide s cost effective manufacturing. In year 2012 China has regarded growth of LED lighting industry for next five years as 7th emerging industry. Hence, China is providing considerable support to increase its LED production at local level. To gain this industry specific benefit combined with the low cost labor availability, it has been decided to establish setting in china for buying LED lighting fixtures from China manufacturing firms. 5. Entry Mode Selected It has been decided to enter Chinese market for buying LED lighting fixtures as third party contractors. This decision is based on the fact the currently China is supporting local production to meet its own demand. Chinese... LED lighting fixtures market of US Importing final product to US, share in US market will captured through distributors and retailers. 1. Product and Country Background LED lighting fixtures industry is among the fastest growing industries in world. When account for the Global demand for lighting fixtures, it is projected to jump high above at 6.9 percent annually to $153 billion through 2016 (Global Information, 2012). This rise in demand is contributed by three major sectors: construction, motor vehicles and machinery and commercial and residential consumers (gnom, 2012). ABC plans to introduce LED lighting fixtures for commercial and residential users. Image 1 (Smallwood, 2012) LED lighting fixtures to be sold in US will be imported from China. China has the highest demand for light fixtures and through 2016 it is expected to retain its top position by with additional 36 percent rise in demand.US follow is on second position with 18 percent share in rise in global sales (Tao, 2012). Penetration of LED lighting fixt ures in US and China with growth in future is given in image 2 and 3. High growth in demand in China and across world has resulted in an increased production of LED lighting fixtures in China with government supporting and subsidizing the industry to remain competitive (Hausken, 2011). To cater dumping issues, ABC Company, has initially developed business model based on low frill product, hence, providing product at status which is used to dump the market.