I recently read a few articles relating to a new product by MusicLite that introduces high-fidelity speakers into light bulbs. The core concept is that a signal will transmit wireless'ly to a receiver in a light bulb (when turned on) and music will play from the ceiling.
I've thought about this angle on music as it relates to the 5 forces. My thoughts on the 5 forces are listed below:
I've thought about this angle on music as it relates to the 5 forces. My thoughts on the 5 forces are listed below:
- Threat of new entry from competitors: Entry into this arena seems actually quite easy. Once an engineer gets his/her hands on the device, it will be pretty easy to duplicate it.
- Threat of substitute products/services: Coupled with the first force above, substitutes are definitely going to happen. I do think that the quality of sound may drop with the knock-off products though, as is usually the case.
- Bargaining power of customers (buyers): No bargaining power that I can foresee
- Bargaining power of suppliers: I also believe there is little bargaining power for the suppliers of the musical bulb as it's very new and targets a niche market. However, due to the fact that Artison and Osram Sylvania are leaders in their respective markets may provide some bargaining power.
- Intensity of competitive rivalry: Aside from rip-offs, I don't think there will be high competition. Due to the niche of the music market that has been targeted, there is not a high demand in the arena yet and so a desire for another company to get into it would be far-fetched I believe
Overall, I like the idea that MusicLite has produced but the high price and limited range could make it a less-desirable solution for music enthusiasts.
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