Scenario 3: The
portable, conference room and fixed installation markets continue to
operate as three separate channels and applications for the customer.
Is anyone really dissatisfied with the way the market is progressing
right now? OK, there may be a few out there, but the fact is, this market
is booming. We are enjoying growth faster than many segments of the
PC industry have enjoyed in years. Some people say 20%, some even predict
60% growth next year, but no one is predicting a slide at all.
We
all recognize the average corporation has barely discovered this market.
Yet, thousands of companies today are either installing or budgeting
to install projection technology to help them communicate in their conference
rooms and training rooms in the future.
So, why is a change needed? Maybe we will stay the course and see it
through with the market segments we have now serving the customer. We
have the portable market, the largest segment of the projector market,
sustaining growth of 20 - 30% a year. We have the conference room segment
of the market that's holding steady with growth projected to be in the
10-20%. We have the fixed-install segment of the market where we are
installing projectors in the ceilings of America's boardrooms, conference
rooms, training rooms and even churches (the fastest growing segment
of the year 2000) at a growth rate projected to be above 50% next year.
And, we have a new segment emerging - the home theater. Historically
served by the CRT, in the home theater market a few manufacturers are
leading the way with Faroudja-enhanced processing the 16:9 (HDTV-style)
imaging with LCD projectors. No one will predict that growth, but everyone
expects it to be in the 15-30% range next year.
So, why fix something that isn't broken? Well, there's a good chance
it wont be. Each channel is represented by a host of sales, service
and installation experts and everyone is enjoying the fruits of this
growth. No one is predicting the demise of any one channel in the very
near future and the system works.
PCs are sold over the Internet, through 1-800 sales companies, through
distributors, through dealers and even through network integration and
consulting companies and they all are profitable (most of the time).
In fact, the same PC through the Internet and through a network integration
company may yield a price difference of up to $500, but the system works.
That extra $500 is insurance for the buyer that he will have service
available when he needs it and it usually includes installation and
set-up - something virtually all of us can do ourselves, but none of
us want to do as loading software is stressful.
So, will it stay the way it is today? Well, it is doubtful it will stay
exactly the way it is today, but it may not change much at all. So,
there you have them - the three scenarios. Each one is valid and possible
but with vastly different outcomes and benefits. But, what's interesting
is that there are even more possibilities. For example, some software
companies and web developers would like you to believe that the future
of presentations, as a whole, doesn't even involve the projector but
centers around the Internet and our ability to communicate via web-based
presentations (i.e. NetShow and ConferTech). Well, this one is harder
for me to believe (right now at least) as the human-touch is, and always
will be strong, and a bond that's hard to break. But, I see kids everyday
that interact better with computers and computerized gadgets better
than with other kids. And, they're bright kids. Maybe their generation,
dominated with a proliferation of microprocessor-based gizmos, will
actually embrace these products as the solution to avoiding business
travel and being in two places at one time. Who knows, but I hope I'm
around to see how it all shakes out. Gary Kayye is Principal of Kayye
Consulting a firm that specializes in providing marketing consulting,
telephony integration and training development to the professional audiovisual
industry. He spent 12 years at Extron and AMX as VP of Sales and Marketing
before founding his own firm. He can be reached at www.kayye.com or
via e-mail at gkayye@kayye.com. He is also the volunteer chairman of
the PETC. He also founded KNews.
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