Annual Report 2004 - HL Display

Competitors
The competitive situation facing HL Display is a very fragmented
one, in terms of both market and products. The company has no
competitor with the same global presence or with as wide a range
of products. This means that HL Display has different competitors
in different markets and different competitors for different products.
No competitor has category solutions that are as well developed.
This means that the number of competitors is very large,
between 130 and 150 companies. It is therefore impossible to
produce a relevant breakdown in terms of market shares.
The competitors can be broadly divided into three groups:
1. International players with operations in more than
five markets
These companies compete with HL Display in individual product
areas, e.g. frame systems. The competitors in this group are usually
large companies with a broad range of activities, which means
that they only compete with HL Display in some of their niche areas.
Checkpoint Systems (USA) and Oechsle (Germany) are two examples
of companies in this group.
Strengths:
– Well-developed product range within their niche
– Efficient production process for each product
– Low prices
HL Display’s competitive advantages:
– HL Display’s complete range creates added value as it can
satisfy the customer’s total needs.
– HL Display offers complete category solutions.
– HL Display’s major initiatives in product development give the
company a leading position.
– HL Display’s good relations with the end customer provide a
benefit compared to competitors in this group, who in many
cases target the end customers via distributors and resellers.
2. Regional players with operations in two to four markets
Companies in this group compete with HL Display in individual product
areas. AL-Display (Germany), Visioplast (France) and Wilson &
Brown (Poland) are examples of companies in this group.
Strengths:
– Often family companies with a low cost base.
– Flexible production process for small batches.
– Good contacts with customers in their own region.
HL Display’s competitive advantages:
– HL Display’s complete range creates added value as it can
satisfy the customer’s total needs.
– HL Display offers complete category solutions.
– Through its global presence, HL Display can follow its major
customers when they expand into new markets and become a
preferred supplier.
3. Local players
Companies in this group compete with HL Display on total solutions.
This group contains most of the 130-150 competitors.
Kleerex (Ireland) is an example of a company in this group.
Strengths:
– Very good contacts with local customers
– High degree of customer specific solutions in their offer
HL Display’s competitive advantages:
– Customers nowadays largely consist of global retail
companies and brand suppliers who value a supplier
who can help them in several markets.
– HL Display’s major initiatives in product development give the
company a leading position.
MARKET
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HL DISPLAY ANNUAL REPORT 2004